CAMBRIDGE, Mass., April 30, 2020 /PRNewswire/ -- Forrester today predicts that due to Coronavirus, global retail sales in 2020 will decline by an average of 9.6 percent globally, a loss of $2.1 trillion. Forrester also predicts that it will take four years for retailers to overtake pre-pandemic levels.
According to Forrester's updated retail forecasts across North America, Asia, Europe, and Latin America, the impact of Coronavirus on retail sales will vary worldwide given the regional differences and considering that each country is at a different stage of the pandemic.
Key findings include:
- Non-grocery offline sales will see a 20% growth contraction in 2020.
- Retailers will continue to face growth constraints with many brick and mortar retailers predicting losses in 2020 and assuming that their growth in online sales will not be enough to offset the lost sales from store closures.
- In the U.S., retail sales will fall by $320 billion in 2020, a decline of 9.1 percent from 2019.
- In Canada, similar losses are expected, with total retail spending expected to decline by $25 billion in 2020, representing a 7.7% drop from 2019.
- Retail sales will lose €260 billion across the EU-5 (UK, France, Germany, Spain and Italy) in 2020, a decline of 10.4 percent from 2019.
- Due to COVID-19, Forrester expects a €56 billion loss in French retail sales in 2020 compared to Forrester’s pre-COVID-19 predictions, representing a 9.5% drop from 2019. In Germany, total retail will fall by €60 billion in 2020, a decline of 10% from 2019. For the UK, Forrester expects a £56 billion loss in UK retail sales in 2020, an estimated decline of 11.4% from 2019.
- In AP, the loss of sales is predicted to reach $767 billion in 2020, a decline of 10% from 2019.
- China is the most negatively affected country in the region, with $192 billion of retail sales lost in January and February of 2020 compared to the same period in 2019.
- Retail sales will decline 6.8 percent for 2020 in LATAM.
"COVID-19 is significantly impacting the global retail landscape," said Michael O'Grady, principal forecast analyst at Forrester. "Retail categories like grocery and essential consumables are performing well, while other categories like fashion, beauty and cosmetics are seeing a marked decline in consumer spend. In 2020, there will be a significant decline in global retail sales, particularly with non-essential items sold offline, which will be a big challenge for brick and mortar retailers. Online sales, however, will be more resilient. To navigate the crisis, retailers need to manage their costs and drive their eCommerce sales and services as much as possible."
- Visit Forrester’s COVID-19 Insights Hub for the latest guidance for leaders to address the growing business and employee experience implications of the coronavirus pandemic.
- Check out Stephanie Balaouras’ blog, Entering The New Normal: How To Safely Bring Your Workforce Back, to learn how retailers can start planning their pandemic recovery.
- Listen to Forrester’s What It Means podcast episode on coronavirus’s impact on retail and what the future may hold for the industry.
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