Non-Store Retailers – Non-Store Retailers

In another milestone in the rise of e-commerce in the U.S., the U.S. Census Bureau last week that non-store retail sales, now largely comprised of online sales, surpassed general merchandise store sales (including department stores, warehouse clubs and supercenters). While some news outlets incorrectly reported that non-store retail had surpassed all brick-and-mortar stores (it didn't!), this still shows how big online retail has become over the years.

Before the emergence of e-commerce, ie in the early 1990s, the non-branch sales, such as mail order, door-to-door and teleshopping sales, made up less than a third of the sales of the general department stores. In 2005, the latter were still twice as large as the sales in non-store retail, but online shopping has really gained driving in the past ten years. Despite the latest milestone, e-commerce sales still do not make up more than around 10 percent of total retail sales in the USA, which shows that the “Retail Apocalypse” is not as close as some may 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.