As advanced in a previous article, Target is predicted to reach
among the top 10 US e-commerce
retailers in the US this year. Its sales are reported to amount to $8.34
billion barely passing Costco which is forecasted to generate $8.33 billion
online in 2020.
The growth of Target
comes at the expense of Macy’s which, despite its expanding online business, is
dropping from 1.2% in 2019 to 1.1%. Out of the top 10 altogether is Qurate
(QVC), a home shopping television network. This downfall might be due to the
fact that last year, Amazon launched a live-streamed video shopping service of
its own. Called Amazon Live, it streams clips in real-time from both Amazon
talent and brands broadcasting their own streams. This, and the fact that
fewer people are watching television lead to less revenue generated by
companies such as Qurate.
However, eMarketer has another theory on the decline of this
brand, as well as that of Macy’s:
the softening of the apparel market. All retailers are being impacted by this.
In fact, in January, the US Commerce Department advanced that receipts at
clothing stores dropped by 3.1% in the month. Several factors are leading to
this: baby boomers are not shopping for clothes as much as other generations and
casual workplaces imply that people are not obligated to purchase expensive
apparel.
Fewer
people are purchasing clothes
Comments
Post a Comment