UK Annual Forecasts 2012–17: Online
Overall online retail growth peaked back in 2008. The growth rates of over 30% achieved back then are unlikely ever to return as the market has matured; most retailers now have an online transactional presence; and the vast majority of consumers have access to broadband internet. Still, some sectors will gain by double-digit percentage rates for the next few years.
- Understand which sectors of online retail will perform the best and offer the most opportunities, using our expenditure forecasts to 2017
- Understand the full potential of mobile devices with our forecasts of the m-commerce market
- Discover our comprehensive analysis of the key issues set to impact the online sector over the next five years
- Identify the market growth drivers and inhibitors and implement our strategies to improve sales growth potential
Online growth is still rapid pace and some sectors – Clothing & Footwear, Food & Grocery and Furniture & Floorcoverings – will gain by double-digit percentage rates for the next few years.
In 2017 the online retail market will be worth almost £50bn, and one pound in every seven spent on retail will be through the online channel. Electricals and Food & Grocery will be the largest online sectors, closely followed by Clothing & Footwear.
Over the next five years the online sector can be split into two sub sectors – home-related sales, which will accelerate or maintain steady growth rates, and non-home-related sales where growth rates will decelerate over the forecast period.
- What is the e-retail market size and how will it develop over the next five years? What proportion of retail is done online?
- How much are retailers benefiting from the mobile revolution? What proportion of online sales are being done on mobile devices?
- Which retail sectors are growing fastest through the online and mobile channels?
Table of contentsOVERVIEW
Food growth trends
Volume growth suffers as consumers lack confidence in spending
Consumers are becoming more confident about purchasing on the internet;
Retailers are investing more in ensuring that their online sites are more intuitive and convenient to use, with wider ranges available;
Sales of smartphones capable of accessing the internet now make up the majority of mobile phone purchases and tablet sales are increasing rapidly;
Inflation in the cost of living and slow wage growth continue to erode disposable income;
Customers are increasingly using stores to view products (treating stores as showrooms) but then purchasing online for cheaper prices;
Broadband penetration is such that nearly all of the population who want it can access it;
Some consumers are put off by the lack of advice and services available from online sellers.
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Table: Principle sources of data and information
Figure: Verdict forecasting methodology
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