Experts predict online retail to hit £40 billion by 2010 warning : Retailers must double spend on technology or risk restricting growth
Retailers could miss out on billions of pounds by failing to invest in the technology to take advantage for consumer enthusiasm in multi-channel shopping.
The Future of Retail: a 2010 Vision, a report commissioned by Royal Mail, reveals vast potential growth for the multi-channel retail sector, but warns that retailers need to double their spend in technology to support multi-channel operations or risk threatening future growth of the sector.
The research, published today, was undertaken by a range of authoritative retail experts to offer retailers an insight on the multi-channel retail landscape and predictions into the future development of the industry. Experts include Rebecca Jennings, senior research analyst, Forrester; Patrick Barwise, professor of marketing and management, London Business School; as well as senior representatives of PA Consulting, Oxford Institute of Retail Management, Mintel and Interbrand and retailers John Lewis, figleaves and Thorntons.
The expert commentary – available from www.royalmail.com/homeshopping – identifies current and future multi-channel retail trends. These include:
· Online sales will grow, accounting for 15 per cent of total retail spend by 2010. This equates to £40.5 billion
· Consumers are now driving force behind multi-channel retail readily adopting internet, digital TV and handheld devices
· Future technologies likely to dominate the multi-channel landscape are the future of PDA, mobile, 3G and interactive TV
Writing in the shopping habits section of The future of retail: a 2010 vision, Charles Dennis marketing leader at Brunel University explained: “Retailers are failing to understand how modern-day shoppers want to buy, and that it is essential to have presence in three main channels – store, catalogue and online.”
Leading the technology section of the report, Chris Field, editor of Retail Technology claimed: “UK retailers invest on average only 1 per cent of turnover in technology. In banking it is 2-3 per cent. Retailing is becoming more like banking in that it is an information business, but the spend isn”t going up.”
The Future of Retail: a 2010 Vision also includes new research with 18 – 30 year olds, the shoppers of the future and outlines further evidence of the true potential of emerging home shopping channels. The results include:
· One in three of respondents expect to do more than half their shopping from home
· One in three expect to shop from home either via interactive or hand held devices
· Catalogues will continue to play an important role, over one in four expect to still shop using catalogues
Richard Roche, Head of Multi-channel Retail at Royal Mail explains: “The report has uncovered that retailers could miss out on billions of pounds by failing to invest in multi-channel shopping.
“At Royal Mail we deliver 6 out of every 10 items ordered online so as a business we clearly have a vested interest in growing the multi-channel market. The future of retail: a 2010 vision canvasses opinions from a range of experts and retailers in this field to identify some long-term trends and provide insights into how the industry might work together to build the sector.
“We have identified and quantifies for the first time the true opportunities multi-channel retail presents the retail sector. Our report offers retailers all the reasons they need to invest in growing this exciting market.”
Ends
For further press information please contact:
Charlotte Nye, Cohn & Wolfe: Tel: 020 7331 5442 or at [email protected]
Jo Swift, Cohn & Wolfe: Tel: 020 7331 5476 or at [email protected]
* Multi-channel retail for the purpose of the report is online, catalogue and high street
