More Americans are now used to shopping online, thanks to the pandemic that has changed the entire way people have shopped and transacted so long. The phenomenon is being witnessed across the world. According to the latest Adobe Digital Economy Index, global e-commerce sales have already crossed the $4 trillion mark this year and are poised to grow further.
In fact, e-commerce came as a savior for the retail sector during the peak of the pandemic and will continue to play a major role in the long term, as people are finding it more comfortable and safer shopping online. This has also seen e-commerce generating maximum revenues for most retail manufacturers over the past year.
E-Commerce Boosts Retail Sales
According to the Adobe Digital Economy Index, global e-commerce sales have crossed $4.2 trillion so far this year. Of the total, the United States accounts for almost 25% of the sales. Sales further got a boost this year after the stimulus checks started reaching millions.
The report says that Americans on average spent an extra $8 on shopping online compared to the normal projections between Mar 11 and Mar 31. In the United States, customers spent $78 billion to shop online in March. This reflects a 49% jump on a year-over-year basis. This is also the biggest jump since July 2020 when people had more cash to spend after the first round of stimulus checks started reaching them.
Moreover, online sales totaled $199 billionin the first quarter of 2021, up39% on a year-over-year basis.
E-Commerce Proving Its Dominance
For e-commerce, 2020 was a landmark year, which also saw brick-and-mortar stores taking a massive hit due to the coronavirus-induced lockdown. The pandemic saw people staying at home and shopping online. This has also seen retailers going for a digital transition.
This year too is proving to be equally great. Not only in the United States but also globally, e-commerce has been playing a major role to boost the retail sector. According to the Adobe report, global e-commerce sales totaled $876 billion in the first quarter, increasing 38% on a year-over-year basis.
Also, U.S. e-commerce spending is expected to reach between $850 billion and $930 billion by the end of this year and cross the $1 trillion mark in 2022.
Another big change has been the growing popularity of curbside pickup, thanks again to the pandemic. The concept of BOPIS (Buy Online Pick-Up in Store) gained popularity and is likely to be a preferred choice for millions given the convenience and safety it offers.
New cases of COVID-19 have somewhat been on the decline and three vaccines are already in the markets. Nonetheless, online shopping will continue to be a safe bet for millions given its safety and convenience. This is thus the right opportunity to invest in retail stocks that have a strong online presence.
eBay Inc. ( EBAY Quick Quote EBAY - Free Report) operates as an online shopping site that allows visitors to browse through available products listed for sale or auction through each company's online storefront.
The company’s expected earnings growth rate for the current year is 18.2%. eBay shares have gained 7.2% over the past 60 days. Currently, eBay carries a Zacks Rank #2.
Tapestry, Inc. ( TPR Quick Quote TPR - Free Report) is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrances and watches.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the past 60 days. Tapestry carries a Zacks Rank #2.
L Brands, Inc. ( LB Quick Quote LB - Free Report) evolved from an apparel-based specialty retailer to a segment leader focused on women’s intimate and other apparel, personal care, beauty and home fragrance products.
The company’s expected earnings growth rate for next year is 41.3%. The Zacks Consensus Estimate for current-year earnings has improved 19.9% over the past 60 days. L Brands sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here. Levi Strauss & Co. ( LEVI Quick Quote LEVI - Free Report) designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 14.4% over the past 60 days. Levi Strauss sports a Zacks Rank #1.
Revolve Group, Inc. ( RVLV Quick Quote RVLV - Free Report) is an e-commerce fashion company. It markets and sells men's and women's designer apparel, shoes and accessories.
The company’s expected earnings growth rate for next year is 40.6%. The Zacks Consensus Estimate for current-year earnings has improved 3% over the past 60 days. Revolve Group has a Zacks Rank #2.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>