With Pandemic Fears Moderating, Telecom Spending May Gain, Cowen Finds
As fears about COVID-19 moderate as regional reopening began last month, U.S. consumers may spend more on telecom products, Cowen Washington Research emailed investors Monday. It said about 78% of respondents canvassed May 26-30 expect to spend the same or…
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more in coming months vs. 66% in mid-April. It was the third straight survey period in which the number of U.S. consumers expecting to spend less the next month declined. Fifteen percent expect to spend more on cable/internet/phone services, 9% on home entertainment/media and 6% on electronics. The U.S. retail sector could take “years to recover from the impact of the coronavirus,” longer than that after the Great Recession, reported eMarketer Monday, saying total retail sales will drop by 10.5% this year vs. an 8.2% drop in 2009. E-commerce is the only “bright spot,” forecast to jump 18% this year, as Americans rely on Amazon and other e-commerce retailers for necessities. Brick-and-mortar sales will fall 14% to $4.18 trillion in 2020, said eMarketer, predicting it will take up to five years for offline sales to return to pre-pandemic levels. Amazon is expected to grow its e-commerce share to 38% and “extend its reign of dominance,” this year, said eMarketer's Andrew Lipsman. Curbside pickup will push Walmart (5.8%) into the No. 2 e-commerce position for the first time, said the analyst. Along with Target, Best Buy, Home Depot and Costco, Walmart is expected to grow e-commerce sales more than 35% this year.