Market Monitor: Online Retail
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Market Monitor: Online Retail
Making the right decisions for your business starts with having the most accurate and current information available. Our Online Retail Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry.
Online Retail Sector Resilience in 2023
In the fourth quarter of 2023, retail sales in the United States surged to $1,831 billion, marking a notable 2.7% increase from Q4 2022.
Online sales in the US showcased remarkable resilience, reaching $285 billion, which accounted for approximately 15% of total retail sales. This surge represented a significant 7.5% increase from fourth quarter of 2022, reflecting a robust compound annual growth rate (“CAGR”) of 12.6% since fourth quarter of 2020.
Analysis
Throughout 2023, the online retail M&A landscape experienced a subdued trend.
Factors Impacting M&A Activity
Various factors, including inflation, escalating interest rates, tightened capital markets, and concerns over a potential recession, contributed to a decline in the number of deals.
Opportunities
Despite prevailing challenges, resilient brands are thriving and capitalizing on opportunities to gain market share from smaller competitors.
Expert Perspective
Consumer bankers note that brands excelling in the current market environment stand out significantly from their counterparts.
Implications for Investors
These successful brands possess the unique ability to attract multiple investors and suitors, resulting in extraordinary valuations.
For more information or questions, please contact our contributors:
Rich Anderson, Managing Director: [email protected]
Tyler Dale, Managing Director: [email protected]
Johnny Sherwood, Director: [email protected]