Experts warn UK’s retail industry could shrink by $11 billion by 2025 as Covid accelerates the transition to online shopping
A recent study highlights that the retail industry in the UK faces huge challenges as a result of pandemic-related lockdowns. The study notes that stores selling apparel, homewares and electronics will experience a “permanent step-change” in customer behavior.
The report warns that European shoppers are anticipated to dedicate about 20% of their spending to online retailers, rather than traditional storefronts.
Online sales surged during the pandemic amid global lockdowns and restrictions. Online sales now account for almost 30% of total UK retail sales.
“Retailers face a make-or-break moment…there is no going back.”
Erin Brookes, head of Alvarez & Marsal’s European retail practice in London
Online shoppers are more likely to return purchases
It estimated that U.K. consumers aged between 18 and 24 return about 16% of products purchased online, compared with 7.5% for consumers aged 65 years and older.
Not all retailers face major upheaval, however. Furniture and jewelry stores will probably return to pre-pandemic conditions, given the preference for “touch and feel” browsing, according to the report.
