Although some had struggled with rising costs and complications from COVID-19 in the first few months of the year -- trying to keep workers and customers safe and product moving -- representatives told The Wall Street Journal Monday they were prepared.
With cash on hand to help transition to post-pandemic life, companies that had already invested in online businesses were selling what people were buying. They also had large supply networks and could frequently restock and handle the sharp increase in online orders.
While shoppers have been visiting home improvement chains and food retailers, stores like Walmart served as the middlemen.
The Wall Street Journal reported that Walmart, Amazon, Target, Home Depot, Lowe’s and Costco accounted for 29.1% of all U.S. retail sales in the second quarter.
Smaller retailers just didn't have the resources necessary to handle the situation being thrust upon them -- they were forced to pivot or shutter permanently. Revenue-tracking firm Womply said sales at 70,000 smaller retailers fell 7% between March and mid-August.
Target and Walmart had mobile apps and delivery networks where many department stores and apparel retailers did not.
|HD||THE HOME DEPOT INC.||366.54||+10.11||+2.84%|
|LOW||LOWE'S COS. INC.||234.99||+9.06||+4.01%|
|COST||COSTCO WHOLESALE CORP.||492.43||+9.91||+2.05%|
Big-box stores also benefitted from higher prices and a strong consumer demand, boosted by government stimulus checks.
Accelerated services -- like same-day pickup and delivery -- increased sales for Target by 270%, with sales from digital channels accounting for 17.2% of Target’s total revenue for the quarter.
It was the highest percentage in company history.