Online shopping is set to account for approximately 53% of UK retail sales by 2028. This statistic is up from 19% and the suggestions are that the retail revolution is just about to go through the roof.
Online shopping is set to account for approximately 53% of UK retail sales by 2028. This statistic is up from 19% and the suggestions are that the retail revolution is just about to go through the roof.
The forecast is thought to be spurred on by 3 different factors:
- The changes in the UK adult population
- The decline of physical stores
- Cheaper and faster home deliveries
It’s thought that a growing percentage of the shopping customer base will be made up of millennials and Generation Z’s. Two-thirds of the Generation Z population is currently aged between 16 and 24. Statistics show that Generation Z shops online at least once every 2 weeks. This compares to the age group of 65 years of age or higher, where only 29% of this group shop online.
When it comes to spending money online, millennials spend approximately £42 per online transaction and an average of £110 per month.
Auto-replenishment and Subscriptions
A recent retail report noted that auto-replenishments and subscriptions are helping to boost online shopping even further. This is because consumers look for cheaper options online and even faster deliveries, without the need to remember to shop for items they need on a regular basis.
Consumers say they think they will spend even less in physical stores over the next year. This could be primarily because there are lower prices online and you can shop from home, or set and forget orders for items such as shaving products, toiletries, food items and more.
The Reinvention of Retailers
Retailers have always had to make changes, they’ve had to reinvent themselves. However, the current pace of change could be a little too fast for some. There are personal data issues that come with shopping online that retailers need to meet and consumers need to be aware of.
However, this has not stopped the growth in the digital retail sector.
It does feel as it the digital retail evolution is only getting started. Those who adopted the online retail world early have had the ability to adapt their business models as consumers have moved more towards shopping via the internet. It’s this adaptation that has helped them rise to the top of the online retail industry.
The Future of Retail
The future of retail and the impact of any future technologies is unclear. However, it does seem that the future of digital retail is looking bright. What impact it may have on physical stores is unclear but for now, the future of retail seems to be digital.
