Online electrical sales ‘to overtake fashion’

Internet shoppers are set to spend more on electrical and electronic goods this year, overtaking clothing and footwear for the first time.

That’s according to new research from Mintel, which predicts that electricals will take a 29 per cent share of UK online sales in 2015, worth £12.6 billion, up from £10.7 billion in 2014. While fashion sales also edged past £10.7 billion in 2014, and are expected to rise to £12.4 billion in 2015, this will still be £190 million behind sales of electrical and electronic goods.

This is partly because 48 per cent of all electronic goods will be sold online this year, compared to just 19 per cent of all clothing and footwear, Mintel estimated (although notably, fashion is still the most frequently purchased item online). Furthermore, while just 6 per cent of grocery sales are made online, they are expected to make up 20 per cent of total e-retail sales in 2015, with spending of £8.6 billion forecast, up from £7.5 billion in 2014.

The research predicted that overall, online retail sales in the UK are expected to hit £43.3 million in 2015, representing 12.7 per cent of all retail sales. Internet retail sales made by companies without stores are also expected to overtake online sales by store-based retailers for the first time in 2015 (at £21.8 billion and £21.5 billion, respectively). Despite this, however, pure play retail sales are expected to make up just 6 per cent of total retail sales in 2015.

Richard Perks, director of retail research at Mintel, observed: “Online is best at selling goods which are bought on specification or where a wide range is demanded – so books, music and electronics. Stores are best for goods where seeing the product is more important, or where customers are going to need help in making their choice. One of the great strengths of a store-based retailer is that it makes the selection for the customer. Online retailers generally leave the selection to the customer who can then be confronted with a huge choice.”

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