10 Dec 2018
Posted in Retail
UK online spend on non-food will top £48bn by 2020, accounting for over a quarter of retail spend
With online retail spend set to rise 7.5% this year while offline spend inches up just 1.0%, UK consumers are set to spend more online this Christmas than ever before.
Almost 80% of the UK population shopped online in the last 12 months, with online shopper penetration driven by younger consumers – over 95% of under 35’s purchased products online, as the growth in the online channel continues to far outpace that of physical stores, according to GlobalData, a leading data and analytics company.
The company’s latest report ‘E-retail in the UK 2018-2023’ reveals that total online spend is forecast to rise 34.5% over the next five years, reaching over £75bn by 2023 as consumers continue to shift spend to digital channels. E-commerce will remain a key driver of total growth in the UK retail market as physical channels underperform due to falling footfall and shoppers seeking convenience and choice online.
Sofie Willmott, Senior Retail Analyst for GlobalData commented: “Retailers continue to invest in their online propositions, enhancing the digital shopping experience while also offering a wider choice of fast, flexible fulfilment options, which is encouraging UK consumers to shop online.”
Clothing & footwear will remain the largest sector online out to 2023 as clothing & footwear specialists improve their online propositions, encouraging consumers to shop more regularly, and online pureplays continue to bolster spend in the sector.
Online pureplays are driving growth with clothing & footwear spend via online-only retailers such as ASOS and Amazon, set to rise 67.4% out to 2023, as they drive further growth through innovation in order to continue to offer a best-in-class shopping journey.
Willmott concludes: “Although spend through physical stores still makes up the lion’s share of UK retail, the online channel is continually evolving alongside consumer shopping habits and as a result is capturing for a growing proportion of spend.”