Total online spend is forecast to rise 34.5% over the next five years, reaching over £75bn by 2023 as consumers continue to shift spend to digital channels.
With online retail spend set to rise 7.5% this year while offline spend increases by just 1%, UK consumers are set to spend more online this Christmas than ever before.
According to the figures by data and analytics company, GlobalData, almost 80% of the UK population shopped online in the last 12 months, with online shopper penetration driven by younger consumers – over 95% of under 35s purchased products online.
The company’s latest report ‘E-retail in the UK 2018-2023’ suggested e-commerce would remain a “key driver of total growth” in the UK retail market as physical channels underperformed.
Clothing and footwear is expected to remain the largest sector online as companies improve digital offerings and online pureplays continue to invest in the sector. The analysts said online pureplays were driving growth via online-only retailers such as ASOS and Amazon. This is set to rise 67.4% by 2023.
Sofie Willmott, senior retail analyst for GlobalData, said: “Retailers continue to invest in their online propositions, enhancing the digital shopping experience while also offering a wider choice of fast, flexible fulfilment options, which is encouraging UK consumers to shop online.
“Although spend through physical stores still makes up the lion’s share of UK retail, the online channel is continually evolving alongside consumer shopping habits and as a result is capturing for a growing proportion of spend.”