The data science team at retail analytics firm DynamicAction dug into online sales and, for a second year, found eroding profits — despite record results.
As analysts are forecasting online sales to see between 16 and 19 percent year-over-year growth this holiday shopping season, DynamicAction said its retail index revealed a “decrease in profit per customer,” which is “setting retailers up for a formidable challenge in 2020.”
The report showed that profitability over the weeks of Black Friday and Cyber Monday “was down 4 percent compared to the same holiday period in 2018.”
Authors of the report said the causes for the decrease “include returns, which have already soared 29 percent in the weeks of Black Friday and Cyber Monday compared to the same period in 2018.”
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