Buying with a Keystroke and a Mouse – November 23, 2020

The Internet has become an indispensable part of our lives. We access information, we communicate, and we purchase goods and services with a few simple keystrokes and the click of a mouse.

The graphic above illustrates the growing importance of Internet sales.
Over the last decade, the portion of online sales as a percent of retail sales has increased by almost 60%—from about 8% of sales to nearly 13% (just prior to the pandemic). It helps explain why some department stores are struggling as consumer buying habits change.
March and April registered a significant shift in buying behavior when lockdowns shut stores and consumers were forced to go online for some goods.
As businesses reopened in May and June, the portion of retail sales placed online subsided, but remain well above pre-pandemic levels.
Further, retail sales, which excludes spending on services, are above pre-pandemic levels per U.S. Census data. Put another way, online sales are grabbing a bigger slice of a bigger pie.
Over the last decade, consumers were warming up to the convenience of online buying. The pandemic appears to have permanently accelerated that shift.

Meanwhile, investors have become skittish amid the surge in daily Covid cases. Former FDA Commissioner Dr. Scott Gottlieb told CNBC last week that the Covid-19 vaccines could “effectively end this pandemic in 2021.”

Leading economic indicators such as the Conference Board’s Leading Index continue to signal that the economy is on the road to recovery. But new social distancing restrictions could have shorter-term economic consequences.

If you have any questions or concerns, feel free to reach out to me. And please adhere to all recommended safety protocols.

I also want to wish you and your family a very happy Thanksgiving, no matter how you celebrate this year.

Created 2020-11-23 20:07:16