COVID-19's impact on e-com long-term, positive: GlobalData

23 May '20

2 min read

Pic: Shutterstock

E-commerce is playing a critical role in the fight against COVID-19, with online retailers experiencing a flood of orders from customers confined to their homes, according to data analytics company GlobalData, whose recently-released report ‘COVID-19 Impact on E-commerce’ revealed COVID-19 will have a long-term positive effect on the e-commerce sector.

Even the most skeptical consumers are forced to abandon physical stores in response to restrictions on movement, the report noted.

Luke Gowland, thematic analyst at GlobalData, commented: “COVID-19 has given the e-commerce sector a boost, with online grocery retailers the biggest beneficiaries. Supermarkets are experiencing unprecedented demand for home grocery delivery. GlobalData expects the UK online food and grocery market to grow nearly 20 per cent in 2020 to £13.2 billion.”

However, social distancing measures have dealt a significant blow to clothing and footwear retailers. GlobalData forecasts a drop in UK online sales of 7.9 per cent from 2019 levels. However, online retailers will still have an opportunity to grab market share from their high street rivals, the company said in a press release.

“Companies will be focusing on their supply chains and how technologies such as the cloud, 5G, IoT, and blockchain can help to improve their efficiency and robustness. Ultimately, ecommerce will benefit from COVID-19 with even the worst effected companies will begin to build momentum once more once lockdown restrictions have been lifted,” Gowland added.

Fibre2Fashion News Desk (DS)

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