After the slump the IT sector saw in retail in the first quarter, coming quarters might see the sector revenues improve. For, the US retailers are spending in tech to improve their online presence and prepare for the post-pandemic shopping experience, say experts.
Though analysts caution that the demand might not be what it was in the pre-COVID-19 levels, IT firms working with large US retailers will gain, they added.
US retailers are one of the large customers for IT companies. At the back of the pandemic, non-essential retail was one of the worst hit as shops were shut and demand came down. Large retailers like JCPenney, Neiman Marcus, and J Crew filed for bankruptcy. Others had to cut down their operations to keep afloat.
According to reports, retail sales in the US could fall more than 6 percent in 2020. Store closures in the US reached an all time high 2020 with 11,000 closed till date compared to 9300 in 2019, according to a HSBC report.