US online retail sales will surpass US$1tril by 2027 compared with US$445bil this year, according to a forecast by business advisory firm FTI Consulting Inc, as more Americans move away from brick-and-mortar stores.
Online sales will grow at a compound annual rate of 12% through 2020 and at a relatively moderate 9% over the next decade, according to the report released on Tuesday.
Purchases made online accounted for 12% of total US retail sales and 50% of total sales growth in the past year, according to the study.
FTI said Amazon.com Inc’s total share of these online sales is likely to increase to 53 % by 2027 from 34% in 2016. This means Amazon’s share would represent nearly 12% of US retail sales by 2027 compared with 4% at present.
This year, stronger online business is once again expected to boost total sales for the US holiday season, a period which typically accounts for 20% to 40% of annual sales for many retailers.
US retail industry group the National Retail Federation has forecast nonstore sales, which include online sales, to rise 11% to 15% to about US$140bil during the last two months of this year. In 2016, those sales rose 12.6%.
Source: News agencies