Almost half of electrical and electronic good sales to be made online
Electrical and electronic goods are set to take the greatest share of online sales in 2015, according to research by Mintel.
It reports almost half (48%) of all electrical and electronic goods are expected to made online in 2015, up from 38% in 2013.
Sales of electrical and electronic goods are predicted to take a 29% share of online sales in 2015, with sales of £12.6 billion forecast, up from £10.7 billion in 2014.
Mintel estimates internet retail sales made by companies without stores will overtake online sales by store-based retailers for the first time by the end of 2015.
Store-based retailers are estimated to post online sales of £21.5 billion in 2015, up from £19.4 billion in 2014.
Despite this demand for the support of a store network, Mintel’s forecast suggests by 2020 store-based retailers will account for 48% of all online sales, down from 51% in 2014.
Overall, online retail sales are expected to hit £43.3 million in 2015, making up 12.7% of all retail sales. By 2020, total annual online sales are expected to rise by 64% to £71.2 billion, with these sales expected to make up 18% of total retail sales.
Director of retail research at Mintel, Richard Perks, said: “Online is best at selling goods which are bought on specification or where a wide range is demanded – so books, music and electronics. Stores are best for goods where seeing the product is more important or where customers are going to need help in making their choice. One of the great strengths of a store based retailer is that it makes the selection for the customer. Online retailers generally leave the selection to the customer who can then be confronted with a huge choice.”
“What’s more, it seems that the in-store experience and online purchasing are working in tandem. Mintel’s research shows that internet retail sales made by companies without stores are expected to overtake online sales by store-based retailers for the first time in 2015. Store-based retailers are estimated to post online sales of £21.5 billion in 2015, up from £19.4 billion in 2014. Meanwhile, internet sales by retailers without stores are expected to hit £21.8 billion in 2015, up from £18.4 billion in 2014. Despite this, pureplay retail sales are expected to make up just 6% of total retail sales in 2015.
“Today, over half (53%) of online shoppers say they would like to be able to order goods online and pay for them in-store, while 48% say they use click-and-collect services to avoid paying delivery charges. Despite this demand for the support of a store network, Mintel’s forecast suggests that by 2020 store-based retailers will account for 48% of all online sales, down from 51% in 2014.
“For online pureplays the challenge will be to provide the levels of service that store-based retailers are able to offer. We are starting to see some of them open physical outlets but this is likely to increase their costs and further erode the price difference between in-store and online. It could also play into the hands of store-based retailers which already have the multichannel experience to effectively edit an online range for displaying in-store. For store-based retailers the distinction between selling online and in-store is becoming increasingly academic as shoppers use them interchangeably. The key for retailers in the future will be to offer as good a service as possible through whichever channel customers want to use at the time”.