Online sales to increase by 28 percent this year, Horvath says
Online retail sales have increased significantly during the pandemic, and by the end of 2020 will be 28 percent higher than in 2019, according to management consulting firm Horváth & Partners. Their value will be close to 5.5 billion Euro, based on Horvath market observations as well as Eurostat and GPeC statistics. The company’s representatives predict that online sales will continue to grow in 2021, when they will reach a value of 6.5 billion Euro, 18 percent more than in 2020.
The share of online shopping in total retail sales has grown. “In 2019, the value of online sales in the retail segment amounted to 4.3 billion Euro, 20 percent over 2018, which means a share of 9 percent of total sales. In March 2020, we noticed a 5 percent increase in online sales compared to the previous month. In April 2020, the increase in online sales compared to March 2020 was 12 percent. The online channel continued to grow and we estimate that its share will reach 12 percent by the end of 2020. Romanians have chosen to buy more online than usual in the context of the COVID-19 pandemic, which led to the closure of commercial spaces considered non-essential.This change in consumer behavior is a lasting one, because the climate of post-isolation uncertainty is maintained, and people will continue to buy online more than in previous years “, said Kurt Weber, General Manager of Horváth & Partners Romania.
In the first four months of 2020, total retail sales decreased overall by about 19 percent compared to the same period last year. These declines have been visible since March, especially in product categories such as textiles, electronics and furniture or books. At the same time, the orientation of many consumers towards e-commerce was also visible, and Horváth & Partners estimates that in 2021, the share of online in total retailer sales will reach almost 14 percent, which will mean that in two years, this channel will increase in importance by over 50 percent.