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Survey: COVID-19 Amplifies E-Commerce

Consumer shopping habits have shifted – perhaps permanently – during the pandemic.

The COVID-19 crisis may have put the final nail in the coffin of brick-and-mortar stores.

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Consumer shopping habits have been greatly impacted since mid-March, according to a new survey conducted by marketing agency TOP Agency. The coronavirus pandemic has dished out a one-two punch to retailers: Government-mandated lockdowns forced many businesses to close their doors for months, and when they finally reopened, many consumers preferred staying home to shop due to safety concerns.

Nearly three-quarters of Americans surveyed (73.5%) reported that they are shopping online more now than they did prior to the spread of COVID-19. Even before 2020, brick-and-mortar stores and mom-and-pop shops had been on the decline, as e-commerce continued to expand its market share. Now that the pandemic has sped up that decline, several major retailers have filed for bankruptcy, such as J.Crew Group, Neiman Marcus, J.C. Penney, GNC, Brooks Brothers and more.

Once the pandemic ends, current consumer shopping habits probably won’t revert to traditional methods, according to the survey. Roughly 88% of respondents said they will continue to shop online more even after a cure or vaccine for COVID-19 is discovered. “The ongoing global pandemic is on track to all but eliminate retail and commerce as we once knew it,” the agency said.

The most purchased online items over the past few months that are normally bought in stores are clothing (67%), household items such as toiletries (60%), groceries (56%), cleaning supplies (51%) and electronics (49%).

Clothing as number one is surprising because it’s so hands-on – buyers want to see the garments, feel them and try them on. However, online apparel sales increased 34% year over year from March 12 to April 11, according to Adobe Analytics. Comfortable clothes drove the increase, as pajama sales skyrocketed 143%, while pants sales dropped 13% and jackets plummeted 33%. “Shoppers shifting their baskets to less-expensive types of items like pajamas, combined with retailers offering discounts to move inventory out of temporarily shuttered storefronts, is causing average apparel prices to drop even as overall online clothing shopping surges,” said Taylor Schreiner, director of Adobe Digital Insights.

Less surprising is the popularity of online grocery shopping. With indoor dining restrictions still imposed in many states, people are likely to continue cooking their own meals and eating at home. That doesn’t necessarily mean they’ll be flocking to stores, though. U.S. online grocery sales hit a record $7.2 billion in June, up 9% over May, as 45.6 million households turned to online grocery pickup and delivery services, Brick Meets Click reported. Since states first went under lockdown in March, online grocery sales have continued to climb, from $4 billion to $5.3 billion in April to $6.6 billion in May.

TOP Data surveyed 600 Americans (18+) with school-aged children.