Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

US Online Retail Sales Likely to Surpass $1 Trillion by 2027

As more Americans move away from brick-and-mortar stores, FTI Consulting forecasts online sales will grow at a compound annual rate of 12 percent through 2020.
Source: Shutterstock
By
  • Reuters

CHICAGO, United States — US online retail sales will surpass $1 trillion by 2027 compared with $445 billion 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 percent through 2020 and at a relatively moderate 9 percent over the next decade, according to the report released on Tuesday.

Purchases made online accounted for 12 percent of total US retail sales and 50 percent 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 percent by 2027 from 34 percent in 2016. This means Amazon's share would represent nearly 12 percent of US retail sales by 2027 compared with 4 percent at present.

ADVERTISEMENT

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 percent of annual sales for many retailers.

US retail industry group the National Retail Federation has forecast non-store sales, which include online sales, to rise 11 to 15 percent to about $140 billion during the last two months of this year. In 2016, those sales rose 12.6 percent.

By Nandita Bose; editor: Matthew Lewis.

In This Article
Organisations

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Technology
Analysis and advice on how technology is disrupting fashion and creating new opportunities.

Using AI to Create Customer-Centric Business Strategies

At The Business of Fashion’s Professional Summit in New York last week, Sona Abaryan, partner and global retail and luxury sector lead at tech-enabled data science firm Ekimetrics, shared how businesses can more effectively leverage AI-driven insights on consumer behaviour to achieve a customer-centric strategic approach.


Case Study | How to Turn Data Into Meaningful Customer Connections

Before fashion businesses can put artificial intelligence to work or target the right shoppers online, they need good data and a deep understanding of who their customers are and what they want. This case study offers a guide for brands that want to truly know their customer, allowing them to make smarter decisions that serve shoppers and drive results.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections