FTI Consulting Projects U.S. Online Retail Sales to be $380 Billion in 2016
October 22 2015 - 7:30AM
FTI Consulting, Inc. (NYSE:FCN), the global business advisory firm
dedicated to helping organizations protect and enhance their
enterprise value, today released its U.S. Online Retail Sales
Forecast: Middle Aged but Still Looking Good, which projects U.S.
online retail sales of consumer goods to reach $380 billion in
2016, a 12 percent increase from expected 2015 U.S. online sales of
$340 billion.
Generally, U.S. online sales continue to grow at low
double-digit rates compared to low single-digit rates for
store-based sales. However, online sales growth has slowed down
slightly in recent quarters and FTI Consulting's Retail &
Consumer Products practice expects this trend of gradually slowing
growth and smaller gains in market share to persist as the online
channel continues to mature. These trends can vary materially by
product category.
Ultimately, FTI Consulting’s forecast model projects U.S. online
sales to reach $550 billion by 2020 and market share for online
sales to be 17 percent compared to 10.5 percent currently. Looking
ahead, the firm’s Retail & Consumer Products practice expects
overall online market share to plateau at approximately 20 percent
a decade from now, as inherent limits to the channel’s sales and
market share potential are approached.
“Despite the online retail channel’s double-digit sales growth
rate, there are some distinct signs that the channel as a whole has
passed peak growth and that deceleration is setting in,” said Bob
Duffy, Global Leader of FTI Consulting’s Corporate
Finance/Restructuring segment and the firm’s Retail & Consumer
Products practice. “Given the nature of the consumer adoption model
that governs such phenomena, we can project how this maturation
will occur.”
By now, most large omni-channel retailers have successfully
developed their online businesses, with many deriving 10 percent or
more of total sales from the online channel. However, much of this
growth has been cannibalized from stores.
“The next challenge for these retailers will be to move beyond
the objective of sales growth at any cost and to ensure that their
online platforms, in concert with store-based strategies, are
improving ROI of the entire enterprise rather than redirecting
sales,” added Mr. Duffy.
The full forecast can be accessed here.
About FTI ConsultingFTI Consulting, Inc. is a
global business advisory firm dedicated to helping organizations
protect and enhance enterprise value in an increasingly complex
legal, regulatory and economic environment. With more than 4,400
employees located in 26 countries, FTI Consulting professionals
work closely with clients to anticipate, illuminate and overcome
complex business challenges in areas such as investigations,
litigation, mergers and acquisitions, regulatory issues, reputation
management, strategic communications and restructuring. The Company
generated $1.76 billion in revenues during fiscal year 2014. For
more information, visit www.fticonsulting.com and connect with us
on Twitter (@FTIConsulting), Facebook and LinkedIn.
FTI Consulting, Inc.
1101 K Street NW
Washington, DC 20005
+1.202.312.9100
Investor Contact:
Abaigeal Healy
+1.617.747.1727
abaigeal.healy@fticonsulting.com
Media Contact:
Nicole Madison
+1.212.850.5647
nicole.madison@fticonsulting.com
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