Adobe’s digital economic index covering the month of June in the USA found that:
- eCommerce up $77B: Compared to pre-pandemic sales for the period, online transactions were $77B higher than expected for the period, with eCommerce levels tracking higher than holiday shopping levels (Nov – Dec). The first six months of 2020 have driven $368.8B in online spend.
- Online grocery inflation continues: As more consumers turn to eCommerce, online grocery prices have increased 4.2 per cent over the past six months, representing a 5X higher increase compared to 2019 and average inflation levels, for the same period.
- In a turnabout, apparel prices rise: After months of significant price decreases, online apparel prices were up 2.7 per cent MoM and 4.3 per cent YoY in June. The first six months of 2020 drove more than twice the deflation online apparel typically experiences during the first half of the year as retailers offered heavy discounts to move inventory and increase demand.
- Computer prices continue to rise and electronics sales grow: As consumers continue to work from home, computer prices have increased by 6.2 per cent since March, with consumer electronics purchases up 5 per cent MoM.
- Digital Purchasing Power turns negative for first time: With inflation occurring across most major online categories including apparel, groceries and electronics, the Digital Purchase Power (DPP) turned negative for the first time since tracking began, in 2014. In June, the DPP was -0.1 per cent; which means consumers can now purchase goods online for $1.01 that would have cost $1.00 in June 2019.
- Grocery cart sizes shrink as consumers slow stockpiling: Grocery cart sizes increased abruptly by 33 per cent in mid-February but have since trended down as consumers settle into sheltering at home, online grocery prices rise, and physical stores begin to reopen.
- New customers drove initial surge in spending, loyal customers are the future: Early on in the lockdown, retailers experienced increased spend from new and returning customers (who had only purchased once previously) as consumers turned to online channels to purchase products. However, good online experiences paid off in June, when new customer growth slowed while loyal customers’ spend persisted.
“As online apparel prices start to increase and inflation continues to occur across categories, digital purchasing power turned negative for the first time. Although just a slight dip of -1%, consumers are essentially now paying more for the online shopping basket they purchased a year ago. With physical stores reopening and slightly higher prices online, retailers will need to offer exceptional online customer experiences to attract and retain customers.”– Vivek Pandya, Digital Insights Manager, Adobe
Share