NEW YORK (Reuters) – U.S. online spending is experiencing a rebound, spurred by high gas prices, convenient delivery options and a surge in deals following a brief post-pandemic slump, U.S. retailers say.
Americans, who embraced shopping online when many stores were closed or limited traffic, may be coming back to it now, retailers say. However, the sustainability of these recent gains will depend on whether gas prices remain high and if shoppers can continue paying for subscriptions that offer free delivery.
E-commerce sales made up 15.9% of total U.S. retail sales in the first quarter, the highest since they peaked at 16.4% during the height of the pandemic in 2020’s second quarter, according to Department of Commerce data.
Target said its online sales returned to growth in the first quarter ended May 4 after more than a year of declines. It cited more products available online and the popularity of same-day delivery.
Bigger rival Walmart reported a 22% surge in U.S. online sales last week, exceeding the 17% growth it recorded during the typically strong holiday season.
Lowe’s said its expanded same-day delivery partnerships with DoorDash and Shipt helped it grow online sales and offset some of the slowdown it was seeing with big-ticket projects.
Gas prices are also dissuading Americans from driving to stores, according to Cox Automotive.
Furthermore, Target and Walmart have leveraged technology to improve their online grocery delivery services. Innovations like same-day delivery and contactless payment options cater to the evolving needs of consumers.
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