E-commerce surges amid overall slowing of U.S. retail sales

Seeking Alpha ·

E-commerce retail sales "are on a tear," according to Kevin Gordon, head of Macro Research and Strategy at Schwab Center for Financial Research. The six-month annualized growth rate has surged to +20.1%, a level Gordon notes has been "rare throughout history."

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Despite a general slowdown in U.S. retail sales, the e-commerce sector recorded an exceptional growth rate of 20.1% on a six-month annualized basis. This suggests a rapid shift in consumption patterns from offline to online. Investors should refocus their portfolios on the structural growth of specific industries rather than the weakness in overall consumption data.

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The divergence between broader retail stagnation and digital retail acceleration highlights a fundamental change in consumer behavior. With high interest rates weighing on physical store traffic, the online channel has become the primary driver of growth. Market participants should prioritize companies with strong digital infrastructure and online market share gains to outperform in this environment.

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