Growth of North West e-commerce sees value of listed retailers pass £21bn
The overall value of the North West’s 11 listed retailers has increased by 51% in the past three years, bolstered by the rapid growth of the region’s e-commerce sector, according to business advisory firm Deloitte.
Data from the firm’s North West Share Index shows the total value of retailers listed on the FTSE, FTSE Small-Cap and the Alternative Investment Market (AIM) hit £21bn last quarter, compared with the £13.8bn value in 2016.
The substantial growth has been buoyed in part by the strong performance of the North West’s e-commerce sector.
As a prime example of the sector’s uptick, the market capitalisation of Manchester-headquartered online fashion retailer Boohoo grew fourfold over the period – driven by the growing consumer trend for social media ‘influencer’-led clothing.
Other high-growth e-commerce outlets contributing significantly to the region’s prosperity included Manchester-based Autotrader, which grew by 44%, and Ewloe-based Moneysupermarket.com, which grew by 51%.
In total, the value of the North West’s listed e-commerce sector increased by more than 55%, and now makes up 49% of the total retail market cap.
Traditional bricks and mortar outlets with multiple stores also saw robust growth over the period.
Bury-based JD Sports, which has 385 outlets, grew in value by 154% as it positioned itself for international expansion.
Liverpool-based 600-store B&M, which is also lining up for overseas growth, grew by 31% over the same period.
In contrast, smaller-scale bricks and mortar outlets saw a drop in value of 11%, in line with the challenges hitting the wider UK retail sector.
The strength in e-commerce reflects the UK-wide trend, where internet shopping become increasingly popular – in the past year, internet sales accounted for 19% of total retail sales, up from 13% in 2016, according to the House of Commons’ 2018 library briefing.
Manchester city centre
The report also shows internet retailing is more popular in the UK than in any other EU country, with 82% of UK residents making at least one online purchase in 2017, compared with 75% in Germany, the second highest ranking.
David O’Leary, Deloitte head of retail in the North West, said: “The strength of the North West’s e-commerce sector is exceptional, making full use of the traditional retail and tech sector strongholds.
“The innovation of Manchester-centred companies like The Hut Group and Boohoo has seen the region’s businesses – both public and private – explode on a global scale in recent years.
“Market conditions remain particularly challenging for traditional bricks and mortar outlets at the moment, however, the North West has remained buoyant with JD Sports continuing to outperform.
“This is due to getting the high-street offering right, along with many businesses keeping ahead of the curve by developing omni-channel offerings and looking to expand overseas.”
