Aggregate advanced retail sales (including e-commerce) growth flatlined during 2Q23 & while government data for e-commerce sales performance by itself is unavailable during this period, Amazon’s performance during its recently released 2Q23 report looks solid.
Retail Sales Are Normalizing
- The post-covid retail sales bump driven by consumers returning to brick-and-mortar shopping has diminished, restoring the market to “normal”.
- Resultantly, we see a recent decline in retail sales as consumers have been shifting their spending to services & experiences and away from goods.
- As part of this return to normal, we see Amazon’s online sales growth rebounding from 2022 lows as consumers even out their in-store/online shopping mix back to pre-covid levels.
- Notably, this rebalancing is helped by Amazon’s service improvements, delivering 1.8B units to U.S. Prime members the same or next day during the quarter, up nearly 4x from 2019 levels.
- Also, Amazon is growing its selection of everyday essentials, increasing the basket size & frequency in which consumers shop with Amazon.