Online shopping volumes set to soar but West Midlands will behind most of UK – Barclays
THE West Midlands will see the volume of online shopping deliveries increase by 24% to 117m by 2018 – the lowest anywhere in the country outside the North East and Northern Ireland, a new report has claimed.
Demand will be driven by people buying clothing and footwear, which is set to make up 20% of all deliveries over the next four years – the highest of any product sector.
Electricals is forecast to be the highest growth sector for deliveries, with the number of packages expected to increase by 61% over the next four years.
However, Barclays predicts that digital music and film downloads will decline by 39% over the coming years as subscription-based services increase in popularity.
The survey concludes that by 2018 online food deliveries will overtake the number of book deliveries to become the online retail sector with the third highest volume of deliveries.
The use of smartphones and tablets to place orders is likely to be one factor in growth, as is the offer of new flexible and convenient delivery options.
The research, independently commissioned by Barclays’ Retail and Transport & Logistics banking sector teams, reveals that in 2013, products ordered online generated just over 1bn deliveries; by 2018 this figure is expected to grow to just over 1.35 billion, a 29% increase.
The volume of deliveries in Clothing & Footwear will grow 51% to 256m by 2018 (2013: 170m), Music and Film will increase 54% to 245m (2013: 159m), Food by 20% to 186m (2013: 134m), Books by 39% to 161m (2013: 134m), Health & Beauty by 48% to 150m (2013: 102m), Electricals by 61% to 105m (2013: 65m), Others by 19% to 61m (2013: 51m), Homeware by 13% to 31m (2013: 28m), Toys by 22% to 25m (2013: 20m) and DIY & Gardening by 27% to 25m (2013: 20m).
Ray O’Donoghue, Managing Director at Barclays in the Midlands, commented: “Not only is the online purchasing and delivery market growing, it is also having to evolve quicker and more radically than previously. Driven by the increasing use of tablet and mobile devices, almost seven in ten consumers say they are looking for more innovative and rapid delivery options such as Sunday delivery. Although they seek more flexibility in delivery options, consumers are still very conscious of keeping prices low with cost influencing consumers preference more than any other factor including quality of service.
“Already, retailers are starting to introduce more convenient and flexible delivery services such as non- store based click and collect pick up points. However, with the online sales momentum set to continue, our research shows that it is more important than ever for retailers to reassess their online strategy and boost investment in the online fulfilment process to maximise the benefits of this growing market place.”
