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Shopify Expects Slowdown in 2021 After Record-Breaking Growth

Shopify Expects Slowdown in 2021 After Record-Breaking Growth

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Shopify Expects Slowdown in 2021 After Record-Breaking Growth

Shopify expects revenue growth to slow down this year, with vaccine rollouts encouraging consumers to resume their old shopping habits.

“We expect that we will continue to grow revenue rapidly in 2021, albeit at a lower rate than in 2020,” the company said.

The COVID-19 vaccine rollout is expected to shift a portion of consumers’ spending back to brick and mortar stores and ultimately result in online sales growth at a more normalized pace.

The company noted that it does not expect its gross merchandising volume (GMV) to double this year as it did in 2020 when consumers across every demographic group were turning to digital channels to shop and pay for products and services, Reuters reported.

Shopify’s GMV rose by 99 percent, reaching $41.1 billion during the 2020 holiday shopping season. The growth rate beat analysts’ estimates of $36.67 billion.

Looking ahead, the company is planning to boost sales on mobile channels through products such as Shop App, which allows shoppers to seamlessly checkout on social media apps such as Instagram and Facebook.

Shopify’s U.S. shares declined by 2.4 percent to $1,438 in pre-market trading.

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