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E-commerce growth in the U.S. is holding up, but the rate of increase is decelerating.
U.S. consumers spent $331.6 billion online in the first calendar quarter of 2024 — Jan. 1 to April 30 — up 7 percent year-over-year, according to the latest data from software giant Adobe. Adobe expects the first half of 2024 to drive over $500 billion in spend online, representing 6.8 percent year-over-year growth. That’s a far cry from the robust, double digit growth seen in recent years past, particularly during COVID-19.
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Adobe analyzes over one trillion visits to U.S. retail sites, 100 million stock keeping units and 18 product categories.
Among the most dramatic trends cited by Adobe:
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Grocery shopping is surging online.
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Consumers are trading down, seeking cheaper products across major e-commerce categories including personal care, electronics, apparel, furniture as well as groceries, often opting for generic store labels rather than pricier brand names.
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Consumers are increasingly using their mobile devices when shopping.
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More Americans are taking advantage of buy now, pay later programs.
Consumers are being “strategic,” in their selections and opting for cheaper goods, Vivek Pandya, lead analyst, Adobe Digital Insights, told WWD.
Pandya also said that groceries drove $38.8 billion online and rose significantly at 15.7 percent year-over-year, but about 5 percent of that growth would be attributed to price increases from a year ago, while the bulk of the growth would be due to higher demand. He also said that consumers have become very comfortable shopping for groceries online, a trend that first emerged during the pandemic.
While groceries continue to see seriously inflated prices, Pandya said prices this year on consumer goods overall are down 5 to 6 percent.
“In an unpredictable economic environment, the latest data from Adobe Analytics shows continued resilience in the digital economy, as consumers embrace new categories online,” Pandya said in his prepared remarks. “Groceries is a standout, and Adobe expects that in the next three years, the category will be a dominant force in e-commerce that is on par with electronics and apparel in revenue share.”
The single-digit online spending growth was supported by “stable spend” in discretionary categories including electronics and apparel, as well as by the surge of grocery spending, according to Pandya.