Loss of sales in online retail

According to a study by the German E-Commerce and Distance Selling Trade Association (bevh), e-commerce slumped by almost 20 per cent in March 2020 compared to the same period last year.

According to a study by the Bundesverband E-Commerce und Versandhandel Deutschland e.V. (bevh), e-commerce in March 2020 was up on the same period of the previous year.m slumped by almost 20 per cent.

Only the categories that also in high demand in the retail trade were able to partly significant increases are listed: Food, drugstore goods, medicines and do-it-yourself and DIY ranges. This means that almost all of the growth that online retail in January and February had been destroyed.

"E-commerce is now a normal shopping channel. This is why such a crisis in consumer sentiment is having a full impact on our industry. The assertion that e-commerce would emerge from the coronavirus pandemic as a 'winner' across the board is simply wrong," says Gero FurchheimPresident of the bevh and Spokesman of the Management Board of Cairo AG.

However, it is true that the opportunities of e-commerce for supplying customers and the retail business models can be experienced in a new way.

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In addition to the Consumer information collected weekly the bevh regularly since the beginning of March asked its members about the business situation. First in the last days of Marchwhich could no longer be recorded in the consumer survey, There was a revival in demand forwhich, however, is nowhere near enough to make up for the accumulated loss of sales.

"Demand is picking up and this positive signal must also be channelled back into bricks-and-mortar retail. That's why we now need standardised approvals for contactless "Click & Collect" - the contactless and secure handover of goods ordered by phone or online. This concept could now, in addition to online retail, make a contribution to the security of supply for the population and the survival of bricks-and-mortar shops and must be a mandatory part of the exit strategy. Shops are full of goods and seasonal items are at risk of losing value in the short term," says Gero Furchheim.

Pharmaceuticals lead the field in absolute growth

In the 1st quarter of 2020, the Growth in the food category at 28.1 per cent compared to the previous year. Alone In March, the increase was 55.8 per cent. Medicines were sold for EUR 227 million in the 1st quarter of 2020. (Q1 2019: EUR 171 million incl. VAT) were purchased. Turnover here rose by 88.2 per cent in March. In absolute terms, this growth was Small product group thus frontrunner.

In the January and February e-commerce sales were still increase by 8.8 per cent. After years of growth, numerous categories showed unabated growth of over 10 per cent. The major categories Clothing (+9.5 per cent), Consumer electronics (+8.9 per cent) and Computers/accessories (+9.6 per cent) continued to show a very dynamic development. In March, sales then plummeted by 18.1 per cent across all categories. The clothing segment even plummeted by more than 35 per cent. Consumer electronics fell by 20.9 per cent, while computers and accessories recorded a decline of 22.7 per cent despite spending on home office solutions.

In the 1st quarter, the Pharmacy mail order companies ahead. This category grew by 25 per cent compared to the previous year. The biggest losses achieved the Online shops of brick-and-mortar retailerswhich fell by 9.5 per cent. Growth of 4.9 per cent compared to the previous year was generated by the Online marketplaces. In percentage terms, the Internet Pureplayer with an increase of 4.9 per cent.

[infotext]The German E-Commerce and Distance Selling Trade Association (bevh) is conducting the „Interactive Commerce in Germany“ consumer survey for the sixth time in a row. Since 2018 with the new partner Beyondata GmbH. In the study, 40,000 private individuals from Germany aged 14 and over are surveyed from January to December on their spending behaviour in online and mail-order retail and their consumption of digital services (e.g. in the travel or ticketing sector). The final results of the study will be published at the beginning of 2021 after the survey has been completed. The figures presented here are based on the analysis of the months January to March 2020.

Source: bevh