E-retail in the UK - 2017 Growth In The Online Channel Will Be Driven By Clothing & Footwear, With Sales Forecast To Rise 55.2% Till 2022

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"E-retail in the UK - 2017", report offers comprehensive insight and analysis of the online channel in the UK, the main trends and hot issues, major players and consumer shopping behaviour. It also provides forecasts to 2022 across key retail sectors.

The online retail sector will continue to experience strong growth over the next five years, propping up the UK retail market. Growth in the online channel will be driven by clothing & footwear, with sales forecast to rise 55.2% over the next five years. The continued success of fast fashion online pureplays and retailers investment in improving customer experience will ensure clothing & footwear remains a driving force within the online channel.

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Despite the online channel providing a lifeline to multichannel retailers who are experiencing tough offline sales, e-retail imposes challenges such as the management of returned stock and the continuous need to innovate to offer fast and low cost fulfilment options. Online returns are forecast to grow at practically the same rate as online spend driven by consumers becoming more confident with free and simple returns processes offered by retailers along with the rise of delivery saver schemes.

The report provides in-depth analysis of the following -
- The hot issues
- What people buy
- Who shops
- The shopper journey
- Where people shop

Scope

- Sales via smartphone are a key area of growth for the online channel over the next five years, with spend via mobile set to grow 112.0%, overtaking tablet sales in 2018. Mobile growth is predominantly driven by food & grocery and clothing & footwear sectors, with the latter category aided by the see now, buy now mentality of consumers frequently browsing social media. Retailers should prioritise investment in mobile platforms and apps to capitalise on the forecast growth in mobile spend.
- Due to its fast online growth, clothing & footwear will further dominate the online returns market, with the category forecast to account for almost 70% of all online returns by 2022. Clothing & footwear retailers must enhance the way products are displayed online to curtail the anticipated rise in returns, using by video content, higher image quality and styled model images.
- Consumers are increasingly shopping online in order to access a wider of products. This year 17.2% of consumers stated they shopped online because a product was not available elsewhere, which was up 1.6 ppts on last year. This is driven by successful online pureplays ASOS and Amazon, the latter using its Marketplace and Handmade platform to supply customers with a huge assortment, with many items unavailable in UK physical stores. Multichannel players should use their online platforms to showcase an extended collection, enabling them to trial ranges, with a view to allocate store space if online sales warrant this.

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Reasons to buy

- Utilise our five year forecasts to 2022 for the online channel, and sector penetration to help form an effective growth strategy.
- Review our analysis on hot issues and understand the factors driving the market.
- Identify the key players in the online channel using our in-depth analysis of how and why certain sectors are performing well in the market to gain strategic insight.
- Understand the journey of consumers throughout the process of purchasing online.
- Recognise which consumers are shopping online and utilise analysis of shoppers motivations to enable a better understanding of the online channel moving forward.

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