Markets
The Pandemic Economy: What are Shoppers Buying Online During COVID-19?
The Fastest Growing and Declining E-Commerce Categories
The COVID-19 pandemic is having a significant impact on every aspect of life, including how people shop for their necessities, and their not-so-necessities.
With online retail sales estimated to reach an eye-watering $6.5 trillion by 2023, the ecommerce sector was already booming. But since the outbreak, online shopping has been catapulted into complete overdrive. Even the largest retailers on the planet are struggling to keep up with the unprecedented consumer demand—but what exactly are people buying?
To answer this question, retail intelligence firm Stackline analyzed ecommerce sales across the U.S. and compiled a list of the fastest growing and declining ecommerce categories (March 2020 vs. March 2019) with surprising results.
The Frenzy of Buyer Behavior
As people come to terms with their new living situations, their buying behavior has adapted to suit their needs. While panic buying may have slowed in some countries, consumers continue to stock up on supplies, or “pandemic pantry products”.
Many consumers are also using their newfound time to focus on their health, with 85% of consumers taking up some kind of exercise while in social isolation, and 40% of them saying they intend to keep it up when restrictions are lifted.
These changing behaviors have resulted in a number of product categories experiencing a surge in demand — and although a lot of them are practical, others are wonderfully weird.
The Fastest Growing Categories
While the below list features several shelf-stable items, it seems as though consumers are taking matters into their own hands, with bread making machines sitting in second place and retailers selling out of their top models.
It’s clear from the list that consumers are considering positive changes to their lifestyle while in isolation, as fitness, smoking cessation, and respiratory categories are all experiencing growth.
Explore the 100 fastest growing product categories below:
Rank | Category | % Change in March (2020 vs. 2019) |
---|---|---|
#1 | Disposable Gloves | 670% |
#2 | Bread Machines | 652% |
#3 | Cough & Cold | 535% |
#4 | Soups | 397% |
#5 | Dried Grains & Rice | 386% |
#6 | Packaged Foods | 377% |
#7 | Fruit Cups | 326% |
#8 | Weight Training | 307% |
#9 | Milk & Cream | 279% |
#10 | Dishwashing Supplies | 275% |
#11 | Paper Towels | 264% |
#12 | Hand Soap & Sanitizer | 262% |
#13 | Pasta | 249% |
#14 | Vegetables | 238% |
#15 | Flour | 238% |
#16 | Facial Tissues | 235% |
#17 | Allergy Medicine | 232% |
#18 | Women’s Health | 215% |
#19 | Cereals | 214% |
#20 | Power Generators | 210% |
#21 | Laundry Supplies | 200% |
#22 | Household Cleaners | 195% |
#23 | Soap & Body Wash | 194% |
#24 | Toilet Paper | 190% |
#25 | Jerky & Dried Meats | 187% |
#26 | Chips & Pretzels | 186% |
#27 | Crackers | 184% |
#28 | Health Monitors | 182% |
#29 | Popcorn | 179% |
#30 | Computer Monitors | 172% |
#31 | Fitness Equipment | 170% |
#32 | Single Vitamins | 166% |
#33 | Nut & Seed Butters | 163% |
#34 | Cat Food | 162% |
#35 | Fruit Snacks | 162% |
#36 | Baby Care Products | 162% |
#37 | Refrigerators | 160% |
#38 | Baking Mixes | 160% |
#39 | Toilet Accessories | 160% |
#40 | Dog Food | 159% |
#41 | Diapers | 154% |
#42 | Yoga Equipment | 154% |
#43 | Bottled Beverages | 153% |
#44 | Baby Meals | 153% |
#45 | Cookies | 147% |
#46 | Digestion & Nausea | 144% |
#47 | Snack Foods | 141% |
#48 | Herbal Supplements | 136% |
#49 | Cooking Oils | 135% |
#50 | Water | 130% |
#51 | Incontinence & Tummy | 129% |
#52 | Mutivitamin | 126% |
#53 | Cat Litter | 125% |
#54 | Training Pads and Trays | 125% |
#55 | Juices | 125% |
#56 | Smoking Cessation | 122% |
#57 | Dried Fruit & Raisins | 120% |
#58 | Salt & Pepper Seasoning | 118% |
#59 | Craft Kits & Projects | 117% |
#60 | Batteries | 116% |
#61 | Trash Bags | 116% |
#62 | Nuts & Seeds | 116% |
#63 | Hair Coloring | 115% |
#64 | Sauce & Gravy | 115% |
#65 | Deli Foods | 114% |
#66 | Syrups | 114% |
#67 | Breads & Bakery | 114% |
#68 | Minerals | 113% |
#69 | Condiments | 111% |
#70 | First Aid | 108% |
#71 | Nail Care | 108% |
#72 | Humidifiers | 105% |
#73 | Art Paint | 104% |
#74 | Office Chairs | 104% |
#75 | Deodorant | 103% |
#76 | Jams, Jellies & Spreads | 102% |
#77 | Coffee | 101% |
#78 | Spices & Seasoning | 100% |
#79 | Skin Care | 99% |
#80 | Pain Relievers | 99% |
#81 | Cooking Vinegars | 98% |
#82 | Air Purifiers | 97% |
#83 | Granola & Nutrition Bars | 97% |
#84 | Pudding & Gelatin | 97% |
#85 | Toy Clay & Dough | 95% |
#86 | Single Spices | 95% |
#87 | Bird Food & Treats | 91% |
#88 | Lab & Science Products | 90% |
#89 | Eczema & Psoriasis | 90% |
#90 | Ping Pong | 89% |
#91 | Chocolate | 86% |
#92 | Baking Ingredients | 84% |
#93 | Energy Supplements | 84% |
#94 | Respiratory | 82% |
#95 | Office Desks | 82% |
#96 | Potty Training Supplies | 82% |
#97 | Herbs, Spices & Seasonings | 82% |
#98 | Keyboard & Mice | 80% |
#99 | Body Lotion | 79% |
#100 | Safes | 69% |
Interestingly, toilet paper has seen more growth than baby care products, and cured meats have seen more growth than water. But while some categories are experiencing a drastic increase in demand, others are slumping in the pandemic economy.
The Fastest Declining Categories
An unprecedented wave of event and vacation cancellations is having a huge impact on the products people consume. For instance, luggage and suitcases, cameras, and men’s swimwear have all seen a dip in sales.
See the full list of 100 fastest declining categories below:
Rank | Category | % Change in March (2020 vs. 2019) |
---|---|---|
#1 | Luggage & Suitcases | -77% |
#2 | Briefcases | -77% |
#3 | Cameras | -64% |
#4 | Men’s Swimwear | -64% |
#5 | Bridal Clothing | -63% |
#6 | Men's Formal Wear | -62% |
#7 | Women’s Swimwear | -59% |
#8 | Rash Guards | -59% |
#9 | Boy’s Athletic Shoes | -59% |
#10 | Gym Bags | -57% |
#11 | Backpacks | -56% |
#12 | Snorkelling Equipment | -56% |
#13 | Girl’s Swimwear | -55% |
#14 | Baseball Equipment | -55% |
#15 | Event & Party Supplies | -55% |
#16 | Motorcycle Protective Gear | -55% |
#17 | Camera Bags & Cases | -54% |
#18 | Women’s Suits & Dresses | -53% |
#19 | Women’s Boots | -51% |
#20 | Cargo Racks | -51% |
#21 | Women’s Sandals | -50% |
#22 | Drones | -50% |
#23 | Boy's Active Clothing | -50% |
#24 | Lunch Boxes | -50% |
#25 | Store Fixtures & Displays | -50% |
#26 | Automotive Mats | -50% |
#27 | Men’s Outerwear | -49% |
#28 | Watches & Accessories | -49% |
#29 | Cargo Bed Covers | -48% |
#30 | Track & Field Equipment | -48% |
#31 | Ceiling Lighting | -47% |
#32 | Camera Lenses | -47% |
#33 | Girl’s Coats and Jackets | -47% |
#34 | Women’s Hats & Caps | -47% |
#35 | Women's Outerwear | -47% |
#36 | Video Cameras | -46% |
#37 | Wheels & Tires | -46% |
#38 | Motorcycle Parts | -45% |
#39 | Women’s Wallets | -45% |
#40 | Shocks & Struts | -44% |
#41 | Transmission & Parts | -44% |
#42 | Girl’s Athletic Shoes | -44% |
#43 | Women’s Shoes | -44% |
#44 | Telescopes | -44% |
#45 | Sunglasses & Eyeglasses | -43% |
#46 | Men’s Tops | -41% |
#47 | Video Projectors | -40% |
#48 | Men’s Athletic Shoes | -40% |
#49 | Marine Electronics | -40% |
#50 | Hand Tools | -40% |
#51 | Wine Racks | -40% |
#52 | Men's Shoes | -40% |
#53 | Clocks | -39% |
#54 | Baby Girl’s Shoes | -39% |
#55 | Bracelets | -39% |
#56 | Men’s Boots | -39% |
#57 | Tapestries | -39% |
#58 | Camping Equipment | -39% |
#59 | Men’s Bottoms | -38% |
#60 | Cell Phones | -38% |
#61 | Tool Storage & Organizers | -38% |
#62 | Necklaces | -38% |
#63 | Swimming Equipment | -37% |
#64 | Men’s Hats & Caps | -37% |
#65 | Girl’s Shoes | -37% |
#66 | Industrial Tools | -36% |
#67 | Juicers | -36% |
#68 | Desktops | -35% |
#69 | Classroom Furniture | -35% |
#70 | Bar & Wine Tools | -35% |
#71 | Glassware & Drinkware | -35% |
#72 | Musical Instruments | -34% |
#73 | Power Winches | -34% |
#74 | Home Bar Furniture | -34% |
#75 | Office Storage Supplies | -34% |
#76 | Girl's Active Clothing | -34% |
#77 | Women’s Tops | -34% |
#78 | Braces, Splints & Supports | -34% |
#79 | Car Anti-theft | -34% |
#80 | Rings | -34% |
#81 | Blankets & Quilts | -33% |
#82 | Women's Athletic Shoes | -33% |
#83 | Kitchen Sinks | -33% |
#84 | Golf Clubs | -33% |
#85 | Equestrian Equipment | -33% |
#86 | GPS & Navigation | -32% |
#87 | Recording Supplies | -32% |
#88 | Home Audio | -32% |
#89 | Boy's Accessories | -32% |
#90 | Earrings | -32% |
#91 | Dining Sets | -31% |
#92 | Calculators | -31% |
#93 | Boy's Shoes | -31% |
#94 | Volleyball Equipment | -31% |
#95 | Strollers | -31% |
#96 | Coolers | -30% |
#97 | Sanders & Grinders | -30% |
#98 | Men's Activewear | -29% |
#99 | Living Room Furniture | -29% |
#100 | Climbing & Hiking Bags | -28% |
Regardless of which list a product falls under, it is clear that the pandemic has impacted retailers of every kind in both positive and negative ways.
The New Normal?
Officially the world’s largest retailer, Amazon has announced it can no longer keep up with consumer demand. As a result, it will be delaying the delivery of non-essential items, or in some cases not taking orders for non-essentials at all.
This presents a double-edged sword, as the new dynamic that is bringing some retailers unprecedented demand could also bring about an untimely end for others.
Meanwhile, the question remains: will this drastic change in consumer behavior stabilize once we flatten the curve, or is this our new normal?
Markets
Beyond Big Names: The Case for Small- and Mid-Cap Stocks
Small- and mid-cap stocks have historically outperformed large caps. What are the opportunities and risks to consider?
Beyond Big Names: The Case for Small- and Mid-Cap Stocks
Over the last 35 years, small- and mid-cap stocks have outperformed large caps, making them an attractive choice for investors.
According to data from Yahoo Finance, from February 1989 to February 2024, large-cap stocks returned +1,664% versus +2,062% for small caps and +3,176% for mid caps.
This graphic, sponsored by New York Life Investments, explores their return potential along with the risks to consider.
Higher Historical Returns
If you made a $100 investment in baskets of small-, mid-, and large-cap stocks in February 1989, what would each grouping be worth today?
Small Caps | Mid Caps | Large Caps | |
---|---|---|---|
Starting value (February 1989) | $100 | $100 | $100 |
Ending value (February 2024) | $2,162 | $3,276 | $1,764 |
Source: Yahoo Finance (2024). Small caps, mid caps, and large caps are represented by the S&P 600, S&P 400, and S&P 500 respectively.
Mid caps delivered the strongest performance since 1989, generating 86% more than large caps.
This superior historical track record is likely the result of the unique position mid-cap companies find themselves in. Mid-cap firms have generally successfully navigated early stage growth and are typically well-funded relative to small caps. And yet they are more dynamic and nimble than large-cap companies, allowing them to respond quicker to the market cycle.
Small caps also outperformed over this timeframe. They earned 23% more than large caps.
Higher Volatility
However, higher historical returns of small- and mid-cap stocks came with increased risk. They both endured greater volatility than large caps.
Small Caps | Mid Caps | Large Caps | |
---|---|---|---|
Total Volatility | 18.9% | 17.4% | 14.8% |
Source: Yahoo Finance (2024). Small caps, mid caps, and large caps are represented by the S&P 600, S&P 400, and S&P 500 respectively.
Small-cap companies are typically earlier in their life cycle and tend to have thinner financial cushions to withstand periods of loss relative to large caps. As a result, they are usually the most volatile group followed by mid caps. Large-cap companies, as more mature and established players, exhibit the most stability in their stock prices.
Investing in small caps and mid caps requires a higher risk tolerance to withstand their price swings. For investors with longer time horizons who are capable of enduring higher risk, current market pricing strengthens the case for stocks of smaller companies.
Attractive Valuations
Large-cap stocks have historically high valuations, with their forward price-to-earnings ratio (P/E ratio) trading above their 10-year average, according to analysis conducted by FactSet.
Conversely, the forward P/E ratios of small- and mid-cap stocks seem to be presenting a compelling entry point.
Small Caps/Large Caps | Mid Caps/Large Caps | |
---|---|---|
Relative Forward P/E Ratios | 0.71 | 0.75 |
Discount | 29% | 25% |
Source: Yardeni Research (2024). Small caps, mid caps, and large caps are represented by the S&P 600, S&P 400, and S&P 500 respectively.
Looking at both groups’ relative forward P/E ratios (small-cap P/E ratio divided by large-cap P/E ratio, and mid-cap P/E ratio divided by large-cap P/E ratio), small and mid caps are trading at their steepest discounts versus large caps since the early 2000s.
Discovering Small- and Mid-Cap Stocks
Growth-oriented investors looking to add equity exposure could consider incorporating small and mid caps into their portfolios.
With superior historical returns and relatively attractive valuations, small- and mid-cap stocks present a compelling opportunity for investors capable of tolerating greater volatility.
Explore more insights from New York Life Investments
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