If the first confinement had brought in a lot of money for the giants of e-commerce, the second confinement which was triggered a little over a month before Christmas, was a real jackpot for Amazon and its competitors. While physical stores will reopen on November 28 with a Black Friday pushed back to December 4, will stores manage to regain the upper hand and achieve positive sales before Christmas?
Amazon, an explosion in revenues
In this health crisis, there are many businesses that are suffering because of a mandatory closure or a customer base that has disappeared because of the confinement. However, there are other companies that are doing very well and taking advantage of the current situation, generally these are the companies that have the heart of their online business. In the case of Amazon, this re-containment is a real jackpot , since it encourages the French to buy online as they can no longer go to stores that are closed.
A specialist e banking data analysis called Paylead s’of the French between the end of September and the third week of November. It has been revealed that we have placed huge orders on Amazon, the analyst firm even estimates that Jeff Bezos’ company saw a + 67% increase in revenue over the period cited above.
Amazon is not the only winner of this re-containment, since its competitors are also seeing their turnover explode , Vepee would have seen an increase of + 58%, La Redoute + 49% and finally Cdiscount + 54%.
As you will have understood, confinement does a lot of good for e-commerce players. We imagine that if Amazon obtains figures like this in France, in other European countries which are also in confinement, the performance must be similar!
The analysis firm was also interested in physical stores, they are the big losers of this year 2020 since during a period of confinement they had to close for several weeks and when the situation had returned to normal, attendance was clearly lower than previous years.
The report explains that during the first containment, the losses were gigantic because of a lack of organization. During the second confinement, the stores took measures which made it possible to reduce the loss of turnover. For example, physical stores launched their own websites, made maximum use of social media to communicate with their customers, and exploited online ordering with in-store pickup.
Overall, the breakage was limited.