Online sales to overtake high street in next decade
Internet shopping will overtake physical stores in the next 10 years as deliveries become cheaper, faster and more convenient, a new report has found.
Online sales are estimated to account for 53 per cent of all retail sales by 2028.
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The popularity of online shopping among “generation Z” and millenials, who will form 50 per cent of the adult population in the next decade, is set to drive the trend.
Overall, 62 per cent of 16-24 year olds said they shop online at least every fortnight, compared to just 29 per cent of those over 65, according to a report by Retail Economics published this morning.
Millenials spend £110.45 online each month, more than any other age group.
The trend follows five consecutive years of net closures of physical stores and comes at a time when retailers are keen to improve their online offering to stay relevant.
Cheaper and faster deliveries and easier returns were the most often cited drivers behind boosted online sales.
“Successful retailers have always had to reinvent themselves to stay relevant,” said Richard Lim, chief executive of Retail Economics.
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“However, the pace of change will inevitably prove too fast for many.
“While the impact of future technologies and consumer acceptance is highly uncertain, it definitely feels like the digital revolution is only just getting started.”