Mubasher: Online retail sales in the United States are expected to surpass $1 trillion by 2027, according to a forecast by business advisory firm FTI Consulting, Reuters reported on Tuesday.
US online retail sales amounted to $445 billion this year, but it will rise as more Americans move away from brick-and-mortar stores, with a compound annual growth rate (CAGR) of 12% through 2020, and at a relatively moderate 9% over the next decade, the report noted.
The study showed that online purchases have accounted for 12% of total US retail sales, and 50% of total sales growth in the past year.
Amazon.com share of these online sales is likely to increase to 53% by 2027 from 34% in 2016, as per FTI’s report.
This will raise the company’s share to nearly 12% of the total retail sales in the US by 2027, up from the current 4%.
Stronger online business is once again expected to boost total sales for the US holiday season, a period which typically accounts for 20% to 40% of annual sales for many retailers, then news agency noted.
