05/07/2010
By Scott Thompson
UK consumers spent £250 billion shopping online in the last decade, according to the IMRG Capgemini e-Retail Sales Index, which is celebrating its 10th anniversary. Sales during 2010, meanwhile, are set to hit £56 billion.
It’s all a far cry from the early days of the Index. In 2001, UK e-retail sales were £1.8 billion with just six million Britons shopping online. The Index tracks not only the UK’s macro economic picture, with 35 per cent growth during 2006 slowing to 14 per cent during recession-torn 2009, but also the fortunes of individual market sectors.
IMRG chief executive, James Roper, says: “Britons are passionate about shopping online. The combination of ease, convenience and 24/7 access is incredibly compelling. We expect to see that relationship strengthen over the coming decade and by 2020 we predict that the internet will account for half of all retail sales and influence most of the other half.”
What else does the next 10 years hold for online retailers? IMRG predicts greater cross-border trading as the UK market continues to mature. With it will come challenges from European legislators, the need to meet different cultural tastes and payment preferences. Mobile commerce is set to become the defining technological advancement of this decade. Improvements in handsets, browsers, content and data packages mean m-commerce’s time has come.
The UK’s online retail market looks set to grow by 110 per cent in the next decade, reaching £123 billion by 2020. Growth will slow down to six per cent year on year, as the market matures and reaches a tipping point.
