Online Retail Monthly Report | February

17 February 2022

 

Online Retail ETF Monthly Report: Key Takeaways

  • Retail Ecommerce Sales in Europe to Grow to $660 Billion – Retail ecommerce sales are expected to grow 6.2% in 2022, approaching $660 billion in sales.  The continued momentum behind ecommerce means physical retailers will need to up their game in 2022, to avoid further losses to digital sellers. [1]  
  • Rising Influence of Buy Now, Pay Later – In an inflationary environment of higher prices, consumers continue to embrace BNPL as a buying option.  Of the 60% of consumers that know about BNPL options, 45% have not used it, but 14% have used it to make purchases. [2] (PYMNTS and Sezzle)
  • Fiverr, Coupang and ThredUp lead big rally in e-commerce stocks ahead of Amazon earnings in February – Online retail stocks have regained ground on positive earnings results, ahead of Amazon’s report.  While Amazon and other online retailers face tough comps in the first half of the year, Monness Crespi Hardt this headwind will fade in the second half of 2022 and YOY growth rates will once again impress investors. [3]
  • Amazon Marketplace 25% Ecommerce Market - According to eMarketer data, Amazon accounted for 41.4% of all U.S. e-commerce sales in 2021. Because their marketplace accounts for at least 60% of Amazon’s GMV, it nets 25% as its share of U.S. ecommerce. Amazon’s share as an online retailer is 17%. It would theoretically be the largest online retailer even without its marketplace. [4]
  • Shopify Partners with China’s JD.com for Cross-Border – Canadian ecommerce platform Shopify has teamed with China’s JD.com to let merchants in the US sell to JD’s customers in China.  The strategic partnership comes amid tight competition in the e-commerce space in China with players like Pinduoduo and Alibaba.  The deal will let Shopify merchants sell on JD’s cross-border platform JD Worldwide which has 500 million active users in China. [5]

 

Macro Outlook

Earnings Season May Spark Online Retail Rebound

Holiday sales came in better than expected for online retail, up 11% over last year’s tough comparisons. [6]  A late Omnicron surge moved many last-minute shoppers online, but many online purchases were made earlier in the season in hopes of avoiding supply-chain shortages. [7] Online retail has faced investor headwinds as a perceived “stay at home” trade.  But online retail trends already in place were accelerated by the pandemic and many new buying habits such as BNPL, BOPIS, and curbside delivery have been formed.  As supply chains reopen and company’s right size for normal levels of demand, company earnings in the space should once again impress and investors will be reminded that the story behind online retail’s disruption remains in place even post pandemic:  convenience, selection, pricing, and rapid delivery options.

 

Online Retail ETF Performance (As of 31.01.2022)

 

1M

3M

6M

YTD

12M

SI

Global Online Retail UCITS ETF

-19.76%

-39.07%

-42.18%

-19.76%

NA

-43.27%

EQM Global Online Retail Growth Index

-19.72%

-38.95%

-41.96%

-19.72%

-45.96%

-42.91%

Please note that all performance figures are showing net data.Source: Bloomberg / HANetf. Data as of 31/01/2022

Performance before inception is based on back tested data. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product. Source: Bloomberg / HANetf. Data as of 31/01/22. Please note that all performance figures are showing net data.

 

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