Peep this chart, bruh (courtesy of Bloomberg):
E-Commerce’s share of overall retail sales in America has consistently increased at an astronomical rate since 1999. Within a mere 1.5 years between the 4th quarter of 2013 and the 1st quarter of 2015, retail sales increased by 16.67%. Before the turn of the century, e-commerce was just a microscopic blip on the radar of big-box stores and department stores throughout the country. Sixteen years later, online retail has completely shook up the retail game and has the chance to put the former big boys of the industry (Sears, Macy’s, JC Penny’s) into extinction. A CNN article you can peep here highlights the specific struggles of retailers such as Best Buy, Sears, and Kohl’s. These industry vets are totally “hearing footsteps” right now…
It’s pretty clear that the growth of e-commerce depicted in the chart above has something to do, if not everything to do, with the closings of major retail chains across the country. If e-commerce retail sales continue to grow at the same rate over the next ten years (60%!!!!), online retail will control over 11% of the market…..
But wait, that number seems pretty low, no? Trust me, the math is correct. It seems low because the e-commerce retail industry is clearly poised to continue to grow at exponential rates for decades to come. If you’re reading No Filter Network, it’s likely that a majority of retail purchases you make are online. When Baby Boomers and Generation-Xers are replaced by Gen-Yers and Millennials, chains like Best Buy just might be our modern day capitalistic-dinosaurs.
If you want further proof, peep this depiction of e-commerce sales increasing while physical retail sales decreased last year:
As you can see, e-commerce retail sales have changed at about the same rate as physical retail sales have changed since the 2007. Even during the brutal Great Recession years, the 2 indexes have moved at a relatively identical rate. However, mid-2014 sparked a change in which the 2 indexes moved inversely. Expect this trend to continue. No doubt that it’s a start of something new.
PS: Yes, Amazon is taking over the world.
PS 2: This is a double-whammy shot to the groin of Wal-Mart. As physical retailers continue to grow at slower rates than online retailers, Wal-Mart’s e-commerce’s growth has slowly and steadily decreased over the past 2 years.
WE OUT HERE.