With an estimated $1.4 trillion in buying power as of 2019, Black consumers are a powerful force in retail. As online shopping continues to boom, spurred by the upheaval caused by COVID-19, understanding how Black consumers approach online shopping will be critical to success. However, there are some challenges keeping Black consumers from taking full advantage of the digital channel, including income gaps, more limited access to credit cards and an ongoing although narrowing digital divide.

In this Report, Mintel takes an in-depth look at Black consumers’ online shopping behaviors as well as industry efforts to appeal to these consumers, discussing the impact of COVID-19 and prevailing economic trends and making recommendations about how to maximize share of wallet from this group.

• The impact of COVID-19 on Black consumers’ online shopping behavior.

• Demographics and key trends shaping the Black consumer market as well as their use of online shopping.

• Overall market size of ecommerce and Black ecommerce spending.

• Retailers’ marketing approaches towards Black consumers.

Online shopping/ecommerce: the action or activity of buying goods or services via the internet.

This Report discusses Black consumers’ attitudes and behavior regarding shopping online via computers, tablets, smartphones or other devices. It includes purchasing at both online-only retailers and those that also have a brick-and-mortar presence. The focus of this Report is on tangible objects that need to be picked up or delivered; digital media, travel, entertainment, insurance policies, and other intangible products are not the main subjects of this Report.

Readers may also be interested in Mintel’s Key Elements of eCommerce – US, February 2021 and Hispanics and Online Shopping Behaviors – US, May 2021 and other Reports in the eCommerce and the multicultural libraries.

This Report was written in April 2021. Consumer research was fielded in January 2021.

The first COVID-19 case was confirmed in the US in January 2020. It was declared a global health pandemic and national emergency in early March 2020. Across the US, various stay-at-home orders were put in place in spring 2020, and non-essential businesses and school districts closed or shifted to remote operations. The remainder of 2020 saw rolling orders, as states and local governments relaxed and reinforced guidelines according to the spread of the virus in each region.

The pandemic’s impact on the Black community was particularly harsh, with greater job losses and higher rates of illness and death. Online shopping was a lifeline for many consumers during lockdown, but gaps in broadband availability and economic challenges made it more difficult for some Black consumers to take advantage of this channel.

Vaccine rollout began in December 2020. Based on current estimates of vaccine production and distribution, the US could reach herd immunity, with 70-85% of the population vaccinated, by late summer to early fall 2021. Passage of a $1.9 trillion stimulus bill that included direct payments to consumers also helped many lower-income families. However, Mintel anticipates business operations in the US will remain in a state of flux through 2021 as vaccinations get administered and communities return back to normal. Pervasive healthcare inequities have also slowed vaccination rates for Black consumers, specifically.

Mintel’s economic assumptions are based on CBO estimates released on February 1, 2021. The CBO’s previous forecast for US GDP to fall by 5.8% in 2020 was revised after a stronger second half of the year and the updated estimate indicates negative 3.5% GDP for the year. The CBO forecast for GDP to grow by 4.6% in 2021 and unemployment to continue to fall to average 5.7% for the year do not take into consideration the impact of the $1.9 trillion economic relief package, which is expected to further boost growth.