UK shoppers are expected to spend £120.5 billion online this year accounting for over 30 per cent of the total retail spending for the first time.
Online sales are expected to grow by a further £10 billion, or nine per cent, this year building on the unprecedented 46.5 per cent increase seen in 2020.
According to new research conducted by the Centre for Retail Research (CRR) on behalf of Vouchercodes, online growth is set to continue this year but slow dramatically in 2022.
Ecommerce’s percentage of total retail sales is expected to jump 11 per cent this year to 30.2 per cent.
However, the research predicts that online growth will slow dramatically next year to just 0.1 per cent, while ecommerce’s share of total sales will drop to 28.1 per cent.
Meanwhile in-store sales are predicted to continue their recovery throughout the year after dropping by £35.3 billion last year.
Physical sales are expected to rise 1.4 per cent by £3.9 billion this year, but the growth will largely be seen in non-food sales, with food expected to decline 5.4 per cent as the UK emerges from lockdown.
“The pandemic has acted as a catalyst for many changes in the retail industry, especially the migration of more consumers to online shops and people relying more heavily on online retailers than in the past,” Vouchercodes’ lifestyle editor Anita Naik said.
“Despite a difficult economic period, it’s encouraging for the UK’s retail industry to see that shoppers are still keen to spend money in-store as well as online. Whilst physical stores have struggled over the past year, it’s great to see a real desire from consumers to get back to shopping in-store.”