Despite the uncertainty on BREXIT which has slowed economic growth, UK shoppers are estimated to spend more online this Christmas than ever before.
According to a new data by GlobaData, online spend among UK consumers will rise 7.5%, while offline spend will only inch up by 1.0%.
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.
The company’s latest report ‘E-retail in the UK 2018-2023’ reveals it forecasts total online spending to rise 34.5% over the next five years, reaching over £75bn by 2023 as consumers continue to shift spend to digital channels.
eCommerce will remain a key driver of total growth in the UK retail market as physical channels under-perform due to falling footfall and shoppers seeking convenience and choice online.
“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.”
Sofie Willmott, Senior Retail Analyst for GlobalData
Clothing & Footwear
Clothing & footwear will remain the largest sector online out to 2023 as clothing & footwear specialists improve their online propositions.
This will encourage consumers to shop more regularly and online pure plays continue to bolster spend in this sector.
Online pure plays are driving growth with clothing & footwear spend via online-only retailers such as ASOS and Amazon, set to rise 67.4% out to 2023.
These companies drive further growth through innovation to continue to offer a best-in-class shopping experience.
What is your take on forecast by GlobalData on online spending in the UK? Please use the comments section below or head over to our Facebook Group for Small Business Sellers and interact with other small business owners.