Non-Store Retailers

In another milestone in the rise of e-commerce in the US, the US Census Bureau last week that non-store retail sales, which now largely consist of online sales, surpassed overall merchandise store sales (including department stores, warehouse clubs, and supercenters) for the first time in February. While some news outlets erroneously reported that non-store retail had exceeded all brick-and-mortar stores (it didn't!), this still demonstrates just how large online retail has become over the years.

Before the rise of e-commerce, i.e., in the early 1990s, non-store sales, such as mail order, door-to-door sales, and teleshopping, accounted for less than a third of general department store sales. In 2005, the latter were still twice as large as non-store retail sales, but in the last decade, online shopping has really taken off. Despite this recent milestone, e-commerce sales still only represent about 10 percent of total retail sales in the US, showing that the “retail apocalypse” isn’t as close as some might think.

Marking another milestone in the rise of e-commerce in the United States, the US Census Bureau reported last week that nonstore retail sales, which largely comprise online sales these days, surpassed general merchandise store sales (incl. department stores, warehouse clubs, and supercenters) for the first time in February. While some news outlets mistakenly reported that nonstore retail surpassed all brick-and-mortar stores (it didn't!), this still shows how large online retail has become over the years.

Before the advent of e-commerce, ie in the early 1990s, nonstore retail sales, including mail order, door-to-door and teleshopping sales, for example, amounted to less than a third of general merchandise store sales. By 2005, the latter was still twice as large as nonstore retail sales, but over the past decade, online shopping has really taken off. Despite the latest milestone, e-commerce sales still account for no more than roughly 10 percent of total retail sales in the United States, illustrating that the “Retail Apocalypse” isn't as close as some might think.

The following chart shows how nonstore retail sales have grown over the years, surpassing grocery store sales for the first time in December 2017 and now leaving behind general merchandise store sales as well.