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Retail channel integration key to future online sales wins - forecast

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Omni-channel retailers will remain under-threat from Amazon going forward, according to recently-released research, with the online giant set to account for half of all online retail sales by 2023.

Retailers will need to work extra hard in the coming years to capitalise on changing shopping trends, according to FTI Consulting

Retailers will need to work extra hard in the coming years to capitalise on changing shopping trends, according to FTI Consulting

In its 2018 US Online Retail Forecast, published last week, advisory group FTI Consulting estimated that e-commerce sales in the US are expected to top US$1tn by 2025. For this year, online sales in the country will rise by just under 16% to almost $525bn, although Amazon's "sprawling presence" continues to put pressure on larger retailers working to combine their on- and off-line sales presence.

"Due to stronger-than-expected results in 2017, the Retail & Consumer Products practice at FTI Consulting now expects US online retail sales to top $660bn by 2020 and surpass $1tn in 2025, compared to the estimate of 2027 in last year's forecast," the company said late last week. "This represents a compound annual growth rate of nearly 10% over the next decade."

JD Wichser, leader of FTI's Retail & Consumer Products practice, added: "Those retailers with a distinctive and cohesive omni-channel strategy, combined with the ability to flawlessly execute on the operational dimensions will steal share, at an increasing rate, from those that can't. This will be a rude - and expensive - awakening for many that have devoted considerable investment and effort in an attempt to transform their retail business."

E-commerce accounts for about 13% of all retail sales in the US, excluding auto and gas sales, according to FTI.

Running annually since 2000, the Online Retail Forecast considers historical market shares for product categories including music and videos, books and magazines, toy and hobby, consumer electronics, sporting goods, apparel and grocery.

Drinks companies have been working hard in recent years to capitalise on shifting trends in the retail channel. Speaking to just-drinks earlier this year, the head of Pernod Ricard's operations in China flagged that the convergence of on- and off-line is having a major effect on the country's retail landscape.

Using Big Data to create smart shops - the future of retail in China - Click here for a just-drinks analysis


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