Region to see 33% increase in online shopping

YORKSHIRE and Humber will see online shopping deliveries increase by a third to 122 million by 2018, new research reveals.

According to a report by Barclays, demand for buying clothing and footwear over the internet is set to continue, making up 20% of all deliveries over the next four years – the highest of any product sector.

Digital music and film downloads are expected to decline by 39% over the coming years as subscription-based services increase in popularity, while 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.

Barclays attributes the forecasted growth in online retail to people increasingly using smartphones and tablets to place orders and take advantage 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 1 billion deliveries; by 2018 this figure is expected to grow to just over 1.35 billion, a 29% increase.

Debbie Mullen, Barclays head of corporate in Yorkshire, said: “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.”

 

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