Let's face it, 2020 has been a volatile year for the overall economy, mostly because of the COVID-19 pandemic. With many brick and mortar businesses forced to temporarily close, bankruptcies have ensued. Many of the most susceptible companies, small businesses and startups, that have low cash reserves were the first group forced to suspend operations or file for bankruptcy. However, even retail giants have been severely affected by the pandemic in the U.S. With the recent bankruptcy of Lord+Taylor and its subsidiaries Men's Wearhouse and Jos A. Bank, the tally is up to 26 major U.S. retailers that have suffered the same fate so far in 2020. Many others, such as Macys and Dick's Sporting Goods, leaned heavily on cash reserves as they operated at a loss in Q2, and were forced to lay off many employees.
Despite the overall economic downturn, there has been a bright spot that has taken advantage of market conditions. The Ecommerce sector has posted record growth thus far in 2020. Amazon's market valuation has risen an incredible 67%, while Shopify has posted a year-over-year Q2 earnings increase of 97.3%. Simply put: eCommerce is thriving.
Because of this, companies are investing heavily in their eCommerce and web presence. While not all companies can function as a total eCommerce website, this year proves that successful companies must have a strong online brand and commerce platform. While everyone knew that eCommerce is the business of the future, 2020 has made it crystal clear that it is also the business of the present. Companies are either adapting and thriving or being left in the dust. In today's commerce climate, a strong online presence and eCommerce platform is requisite for success!