Based on the latest US Department of Commerce report, retail revenue continues to soar, even after experiencing record high growth in 2020 and 2021. Overall retail sales, year to date are up 9.6% versus last year, with likely half of that growth attributable to increasing inflation.
With the robust growth of retail since the pandemic and the immense acceleration of e-commerce into Q2 2020, for the first time ever, we’re now seeing brick and mortar grow faster than e-commerce.
Although e-Commerce has retained all its Q2 2020 gains and is still above where we’d have expected it to be, the growth rate has begun to slow.
Both retail and e-commerce are facing unprecedented high comparables, with inflation and supply chain issues putting a considerable strain on retail margins. Economic uncertainty, the war in Europe, supply chain disruptions, and pandemic flare-ups are all factors making the future of the retail landscape extremely unpredictable.
Download the Publicis Commerce report of the US Commerce Data here.