US retailers say that domestic online spending is rebounding, spurred by high gas prices, targeted delivery options, and myriad promotional offers, reports Reuters. Target and Walmart both noted growth in their online grocery sales.
In its first-quarter earnings report, Target said that online sales grew for the first time after a year of declines, citing the increased availability of products and the popularity of same-day delivery as reasons for the growth. Walmart, similarly, reported a 22 percent surge in online sales recently, surpassing the 17 percent growth it recorded over the recent holiday season, according to the report.
Overall, ecommerce sales made up 15.9 percent of total US retail sales in the first quarter of this year, the highest since peaking at 16.4 percent during the pandemic, according to Department of Commerce data.
Brian Jacobsen, chief economist at Annex Wealth Management, noted that Target’s digital sales surge might also be attributed to its promotion of the recently released paid membership program Target360, an online delivery service. The company offered the service for a reduced $49 per year (normally $99 per year) alongside a 14-day free-trial option. (SFA)
