Google Cloud, the cloud computing service of Alphabet Inc’s Google, is gearing up for a surge in sales from U.S. retailers during the fourth quarter. Due to the COVID-19 pandemic, consumer behavior has shifted towards online shopping, leading retailers to anticipate record-breaking online sales during the upcoming holiday season.

Cloud technology plays a crucial role in hosting websites and storing data for e-commerce operations. As online activity increases, Google Cloud’s revenue is expected to rise since its fees are often tied to website traffic. To meet the anticipated spike in demand, Google Cloud is abandoning its traditional linear growth model. Carrie Tharp, Vice President of Retail and Consumer at Google Cloud, disclosed that her team is preparing for a “peak on top of peak” this year.

This surge in demand presents a significant opportunity for Google Cloud, as the company has generated approximately 30% of its annual revenue during the fourth quarter in the past two years. Retailers like Kohls Corp and Wayfair Inc have relied on Google Cloud to ensure they have sufficient server capacity to handle the increased website traffic during major shopping events like Black Friday and Cyber Monday.

Interestingly, this year has seen a Black Friday-like demand surge since the implementation of lockdown measures in the United States in March. Retailers have recognized the need to prioritize online sales and reduce in-store hours due to ongoing concerns surrounding the coronavirus. Retail giants like Target Corp and Walmart Inc have already announced plans to reduce in-store hours during the holiday season.

The pandemic has also accelerated the adoption of Google Cloud’s predictive algorithms among retailers. These algorithms have proven helpful in efficiently fulfilling orders. Despite initial plans to implement these strategies in the future, the pandemic has prompted retailers to adopt them earlier than anticipated.

In conclusion, Google Cloud is preparing for a significant boost in sales during the upcoming holiday season. As retailers increasingly rely on cloud technology for their e-commerce operations, Google Cloud is well-positioned to capitalize on the surge in online shopping. The COVID-19 pandemic has not only changed consumer behavior but has also accelerated the adoption of predictive algorithms to enhance order fulfillment efficiency. With retailers expecting record-breaking online sales, Google Cloud will play a crucial role in supporting their digital operations during this peak period.

Useful links:
Google Cloud Retail Solutions
Retailers and Google Cloud Support Millions of Shoppers