A recent analysis from Forrester forecasts that by 2027, online retail sales in the United States will have reached $1.6 trillion, with total retail sales expected to reach the $5.5 trillion mark. In addition, the company predicts that this year will witness online retail sales in the United States topping $1 trillion.
In the same study, Forrester also found that in 2021, physical retail outpaced online retail as a result of the COVID-19 pandemic’s impact on online shopping. The research showed that in 2021, traditional store sales increased by 14% as compared to the year before. As the online retail environment recovers to pre-coronavirus pandemic levels in 2022, Forrester predicts that costs will fall, product selection will expand, shipping times will decrease, and transaction ease will increase.
The findings from Forrester’s study are consistent with predictions that consumer spending on the internet would top $1 trillion by 2022. To save time and money, 30% of online buyers prefer BOPIS or curbside pickup over delivery, according to Adobe’s Digital Economy Index survey published in March 2021. FTI Consulting anticipated that online retail sales would reach $1.07 trillion in 2025, but in a new analysis issued last month, the business revised its prediction to this year.
Consumers struggling with inflation would appreciate cheaper prices, but Forrester illustrated that merchants’ profitability can be hurt by either surplus inventory or consumers’ inflation worries. Amid growing inflation and an excess of merchandise, Target, like other big retailers, has been urged to reevaluate its financial projections.
Source: Retail Dive
