Although brick and mortar retail had a much better than expected holiday sales season, e-commerce dominated the retail scene. Between October and December e-commerce accounted for 49% of the growth in seasonally adjusted total retail sales and 60% of the growth in its addressable market (Defined as total minus autos, gasoline and food services and bars). What this means is that more store closings are on tap as traditional retail reconfigures its store base to account for the growing competition. Needless to say this eventuality will not be helpful for the struggling mall REITs. The data are below:
In $ Millions
Category October December Change
Total 489,468 495,381 5,913
Less: Autos 102,794 102,060
Gasoline 39,322 40,497
Rest. & Bars 56,884 57,549
Addressable Mkt. 290,468 295,275 4,807
Non-Store Retail 52,677 55,562 2,885
Non-Store Percent of Total Change - 49%
Percent of Addressable Change - 60%
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