Online retail has generated a structural shift in retailing. For increasingly time poor consumers, the convenience offered by online retailers has become all the more attractive, apparent in its rapid growth. Online retail sales have increased by an average of 11.4% per annum over the last five years, far exceeding the 1.5% growth reported in total UK retail sales.
This rate of growth however, is slowing. GlobalData estimates that online retail sales will expand 8.0% in 2017, slowing to 4.8% by 2022. As a result, online retailing's penetration rate (share of total retail sales) will start to level out, forecast to reach 18.4% by 2022, only 2.7 percentage points higher than its 2017 estimate. While still a significant figure, it does mean the majority of UK retail sales (81.6%) will continue to take place in stores (offline) by 2022.
Source : Savills