Surge In Online Shopping Set To Generate Over 1.35 Billion Deliveries A Year By 2018

Surge In Online Shopping Set To Generate Over 1.35 Billion Deliveries A Year By 2018


Surge In Online Shopping Set To Generate Over 1.35 Billion Deliveries A Year By 2018

The Last Mile* Report 2014

– UK predicted to see a 29% increase in shopping deliveries by 2018

– Demand for buying clothing and footwear over the internet is set to continue, making up 20% of all deliveries over the next  four years – the highest of any product sector

– Digital music and film downloads are expected to decline by 39% over the coming years as subscription-based services increase in popularity

– By 2018, online food deliveries will overtake the number of book deliveries to become the online retail sector with the third highest volume of deliveries

Online retail is expected to see significant growth in deliveries over the next four years, according to a new report from Barclays, as people increasingly use smartphones and tablets to place orders and take advantage of new flexible and convenient delivery options. The research, independently commissioned by Barclays’ Retail and Transport & Logistics banking sector teams, reveals that in 2013, products ordered online generated just over 1 billion deliveries; by 2018 this figure is expected to grow to over 1.35 billion, a 29% increase.

The Report shows that growth will largely be driven by clothing and footwear, but that the food and grocery market will also become increasingly important, overtaking books in the number of deliveries by 2018, as grocers introduce more convenient and flexible delivery and collection services.  Electricals is forecast to be the highest growth sector for deliveries, with the number of packages expected to increase by 61% over the next four years.

surge table 1

Interestingly, the report shows that the number of people buying digital film and music downloads is expected to decline by 39%, falling from 160 million to 98 million, which is a natural evolution as a result of the increasing popularity of subscription-based services.

Richard Lowe, Head of Retail & Wholesale at Barclays, commented: “Not only is the online purchasing and delivery market growing, it is also having to evolve quicker and more radically than previously. Driven by the increasing use of tablet and mobile devices, almost seven in ten consumers say they are looking for more innovative and rapid delivery options such as Sunday delivery.  Although they seek more flexibility in delivery options, consumers are still very conscious of keeping prices low with cost influencing consumers preference more than any other factor including quality of service.

“Already, retailers are starting to introduce more convenient and flexible delivery services such as non- store based click and collect pick up points.  However, with the online sales momentum set to continue, our research shows that it is more important than ever for retailers to reassess their online strategy and boost investment in the online fulfilment process to maximise the benefits of this growing market place.”

Other key findings from the Report:

– Nearly 30% of retailers would use Click & Collect as their preferred delivery option although less than 20% of consumers have used this service in the past year.

– Whilst the majority of retailers believe online shopping and delivery have benefited their sales numbers, over 30% believe it has been detrimental to costs.

– Letterbox-sized packages and small parcels made up 60% of all deliveries from online orders in 2013 and letterbox-sized packages are set to see the highest growth by 2018, growing by 45%.

– East Anglia is to see the biggest growth in deliveries, while the South East is set to remain as the region with the highest number. Regions where people live closer to towns and cities will see slightly lower growth.

surge table 2

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