Target breaks into the top 10 list of US e-commerce retailers – TechCrunch

   2020-02-24 15:02

Target’s investments in conversions, same-day delivery, and drive-up services are paying off. According to a new report from the analyst company eMarketer, the retailer, which was previously ranked 11th in the US e-commerce sales, has now made up three places to enter the top 10 list as retailer 8. Target is ahead of the declining business areas QVC and Qurate Retail Group (owner of HSN) as well as Costco No. 9 and Macy’s No. 10, the new forecast says.



The company estimates that Target’s e-commerce business will grow 24% in 2020 to reach $ 8.34 billion, breaking the top 10 list. However, Target’s overall share of the US e-commerce market remains low in the shadow of Amazon’s dominance. Amazon will have a 38.7% market share this year, compared to 1.2% at Target. Even Amazon’s closest competitor, Walmart, is only 5.3% behind.

The rest of the top 10 list includes eBay (5.3%), Apple (3.7%), Home Depot (1.7%) and Wayfair (1.5)%), Best Buy (1 , 3%), then Target (1.2%), followed by Costco (1.2%) and Macy’s (1.1%).

Target is unlikely to surpass Costco, which is expected to generate $ 8.33 billion in e. Trading sales in 2020. The growth is also at the expense of Macy’s, which declined by 1.2% in 2019 despite the growing online business. Qurate (HSN) has dropped from 1.2% in 2019 to just 1.0% this year to get out of the top 10 for the first time.

It is worth noting that Amazon took last year in video shopping networks HSN and QVC with its own live streaming video shopping service. Amazon Live, as its service is called, broadcasts live video shows from Amazon talent and brands who broadcast their own streams. This could account for some of the declines that these competing networks will see in 2020, although the increased number of cable cutters and “cable cutters” will likely also help as fewer people shop on their TVs now. [19659003] However, eMarketer marks its decline and Macy’s on the softening apparel market. However, this affects all retailers, not just these three – and not just online retail. In January, the US Commerce Department announced that clothing store revenue fell 3.1% per month, mostly since March 2009.

There are several factors that play a role. Baby boomers don’t buy clothes as often, casual jobs mean people with less expensive clothing can shop, and personalized clothing delivery services like Stitch Fix are becoming increasingly popular. In addition, climate change provided the second warmest January in almost 30 years and reduced the need to buy winter clothing.

Millennials also don’t invest as much in their wardrobes as previous generations, and have helped spread ideas like capsule closets, clothing rentals, and waste reduction through second-hand purchases in places like The Real Real, ThredUp, Poshmark, and elsewhere ,

Target’s earnings in 2020 are not only due to the struggles of competitors or the decline in clothing.

The company has invested heavily to redefine its business for the era of online shopping. New fulfillment options such as the next day (e.g. Target Restock) and the same day via Drive Up and Shipt were introduced. When refurbishing stores, the need was taken to better serve Target’s digital sales by creating more space for online order pickup.

“At a time when brick-and-mortar stores are having trouble keeping up with the rapidly changing retail landscape,” Target appears to have hit the mark, “eMarketer forecast analyst Cindy Liu said in a statement. “Store renovations and the expansion of fulfillment options on the same day, such as in-store pick-up, commissioning and delivery with a chip, pay off. Target found a way to use their stores to fulfill online orders while meeting customer needs for convenience and speed, ”she added.

Other retailers, including eBay and Apple, will lose market share in 2020, both of which will see slight declines.

Amazon, meanwhile, will grow from 37.3% market share in 2019 to 38.7% in 2020 and generate 4.6% of total retail sales both online and offline.


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