Consumers continue to shift more of their holiday spending online, but that doesn't mean that online retailers (led by Amazon, of course) are the only success stories this holiday season. A number of brick-and-mortar retailers, having invested in upping their online game, are now seeing those efforts pay off.
Among physical retailers, Target and Costco look to be early season winners. Between Nov. 1 and Dec. 1, Target has seen its online sales surge 47%, increasing its share of the market by 0.47 percentage points to 3.17% from a year earlier, according to Slice Intelligence, which tracks online receipts from a panel of 5 million shoppers. That’s the biggest pickup among 10 major online retailers Slice tracks. Industry leader Amazon, which saw its sales rise a little more than 27%, was the only one seeing a bigger share pickup, up 0.5 percentage points to 33.66% season to date, a Slice market share study for eMarketer Retail showed.
Amid growing concerns about whether it’s “un-Amazonable,” especially in the wake of Amazon’s Whole Foods buy, Costco’s online performance should ease the minds of skeptics. Among the 10 major online retailers Slice tracked in a study released Wednesday, Costco actually saw the biggest percentage gain of 62%. Its share of the online market rose by 0.34 percentage points to 1.48%.
Kohl’s saw sales jumping 44% to increase its year-over-year share to 2.24% season to date. Best Buy and Walmart each saw their sales rising 28%, upping their respectively share of the market by less than 0.1 percentage points to 4.49% and 2.67%.
To be sure, brick-and-mortar retailers still have a long way to go to catch up to Amazon.
The combined market share of the nine major online retailers ex Amazon together rose by almost one percentage point to a total of 21.38% season to date, still more than 12 points below that of Amazon.
Still, while those share gains may not sound like that much, they do add up when looking at the entire online pie. Adobe, which tracks 80% of online transactions at the largest 100 US online retailers, said in a separate study released Wednesday that online sales from Nov. 1 through Monday rose nearly 15% to $65.15 billion.