The pandemic accelerated the Retail Apocalypse trend which started back in 2010. Amazon was a major winner in this new scenario, accumulating U$ 296 billion revenue in 2020 , a 38.6% surge from 2019. This outstanding performancemeant that Amazon was more than a third (31.4%) of all online retail. While that is impressive, the firm’s market share is down from 43.8% in 2019. How was that possible? Which firms were able to gain space over Amazon?
As the online sales grew substantially, brick-and-mortar stores contracted slightly over this last year. Within online, Amazon continues to reign, but is losing space to other large retailers, such as Target and Walmart. Smaller shops moving online fared better than their peers stuck on the physical space alone. Across sectors, apparel and office supplies suffered the most, while the auto industry, groceries and big box saw a post-pandemic revenue jump. We see brick-and-mortar decline slowed down if Biden’s economic/infrastructure plan can provide a boost to low-income families.