Retail chains get a boost from increasing ecommerce sales – Digital Commerce 360
Buoyed by consumers using omnichannel services, such as buy online pick up in store and curbside pickup, large chains report strong online sales growth in the third quarter.
A new Digital Commerce 360 analysis forecasts top North American retail chains will end the year with a 76.8% growth in ecommerce—the highest rate among the four types of merchants. Crossing $330 billion in online sales, chains grew fast this year in large part thanks to big retailers like Walmart.com Inc., The Home Depot Co. and Target Corp., which stayed open throughout the pandemic and have seen an uptick in buy online pick up in store and curbside orders. Q3 earnings of some top retail chains reported this week show similar trends.
Hardware chain The Home Depot Co. is one such example. Online sales grew approximately 80% in the third quarter ended Nov. 1, the company reported this week. Ecommerce sales accounted for 13% of total sales, executives said on a call discussing the results, according to a SeekingAlpha transcript. The 13% web penetration means Home Depot’s online sales reached $4.36 billion during the quarter. Roughly 60% of online orders were picked up at a Home Depot store, executives said.
“Our [site] visits are up dramatically. We’re up in mobile, desktop, mobile web,” Ted Decker, chief operating officer and president, said on the call. “Our conversion is up despite hyper growth in app and mobile web, which tend to have lower conversion rates than desktop. Our app downloads