Online retail struts its stuff in the holiday season
IIt’s probably no surprise, but online retail sales hit a blistering pace during the 2021 holiday season. Shoppers around the world spent $1.4 trillion online during the holiday season, including 257 billion dollars in the United States.
This testifies to the long-term viability of the Goldman Sachs Future Consumer Equity ETF (GBUY). GBUY debuted in November in what amounts to good timing in terms of supporting consumer spending during the holidays.
The holidays are a thing of the past, but some of the catalysts that sparked more online sales in 2021 persist into 2022, indicating that GBUY is a credible idea regardless of the time of year.
“Because consumers wanted to avoid supply chain issues and stockouts, 30% of global holiday sales were complete by November 22. Retailers that offered curbside or in-store pickup claimed 62% of final global sales,” reports Maria Monteros for Retail Dive.
Another longer-term catalyst for GBUY is social commerce – the combination of online retail and social media.
“The role of social commerce in the consumer journey to purchase is becoming increasingly relevant. During the holidays, 4% of global online sales via mobile devices were made through a social media app, with 10% of mobile traffic coming from social media users,” according to Retail Diver.
By next year, a quarter of retail sales could take place outside of retailers’ websites, mobile apps and physical stores. The expansion of social commerce requires platforms of different modes, whether it’s Shopify (NYSE:SHOP) helping sellers or social media companies providing venues. These include Meta (NASDAQ:FB) and Snap (NYSE:SNAP). All three stocks are members of the GBUY portfolio.
At this point, China is already one of the largest social commerce markets in the world. GBUY gets involved since 19.2% of its geographical exposure is directed towards Asia excluding Japan.
Another interesting theme that has emerged in retail over the past year is that brick-and-mortar retail stores have rebounded and proven to be key in paving the way for more online transactions.
“Even in an increasingly digital environment, brick-and-mortar stores continue to play an important role this holiday. From generating to meeting demand, brick-and-mortar stores influenced 60% of global digital sales during the period. “, according to Retail Dive.
Some GBUY operations are related to this trend by operating physical stores or providing online sites to these retailers.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.