According to a report, online shopping could more than double its share of the retail market by 2028. The internet is expected to account for 53% of retail sales in 10 years’ time as young people who have grown up using the internet are becoming half of the adult population.
One in 10 people of all ages who were questioned for the report said they will be planning to shop online more this year.
Richard Lim, of Retail Economics, said: “Successful retailers have always had to reinvent themselves to stay relevant. However, the pace of change will inevitably prove too fast for many. It definitely feels like the digital retail revolution is only just getting started.”
Online retail is becoming the normal way to shop as it is seen in many ways to be easier and more of a comfort way to shop.
Landlords of retail; market/high street shops have been asked to cut their rents and the government urged to take action on business rates. High street stores are continuing to fail with many companies closing some of their stores to save the business.
High street retailers are struggling due to many factors such as financial struggles; if stores are struggling for business it causes a big financial issue. A store needs staff, lights, heating, a building and many other things. These all require money, if a store is not making a lot of money it can not afford to have staff, utilities or keep the store open. You can not have a store open with no staff or basic electricity therefore the shop would have to close.
Retailers are most likely to go into debt if they are not getting enough money and business, this is another reason why they are struggling. If the debts get high companies are more than likely close and sell. An example of this is New Look who is had to close as many as 60 of their 600 UK stores to help their massive debt.
Competitors are also a big part of some high streets closing as customers might be able to find cheaper items elsewhere and want to buy them there instead of using more of their money on products. An example is B&M Bargains, people may prefer to go here as the products are a lot cheaper than big name stores.
“The industry is undergoing a painful readjustment period,” Lim said. “The acceleration of further store closures will eventually lead to a more ‘inconvenient’ experience for some groups of consumers across many parts of the UK. Inevitably, this frustration will be a catalyst for further online shopping with consumers turning to online as an alternative to in-store purchases.”
People aged between 25 and 44 are more likely to buy food, clothes, electrical goods and books online rather than in store.
