Online Physical Goods Sales to Account for 13% of $30 Trillion Retail Market by 2020
BASINGSTOKE, England–(BUSINESS WIRE)–A new study by Juniper Research has found that online physical goods sales will account for 13% of global retail by 2020, or $3.8 trillion out of a global retail market of nearly $30 trillion.
The new study, Mobile & Online Remote Payments for Digital & Physical Goods: Opportunities & Forecasts 2018-2022, found that traditional ‘bricks and mortar’ retailers are seeking to buttress their ailing offline-store activities with the development of integrated online engagement channels.
According to the research, while many of these leading retailers are being obliged to reduce physical store numbers – Sears’ closed 21% of stores in 2017 – most are now using apps and online channels to augment offline spend. For example, Ikea describes its digital shopping companion app as ‘a bridge between online and instore’.
For more insights, download Juniper’s complimentary whitepaper, ‘Addressing the Pain Points in eRetail’.
Home Depot Heads Juniper Retailer Matrix
Meanwhile, the Juniper Retailer Matrix assessed the online offerings and capabilities of 18 leading retailers in North America, China and Europe, categorising them in terms of the extent to which they are (and will be) able to compete in the online space.
Juniper Retailer Matrix, 2018 – Leaders
1. The Home Depot
2. John Lewis
According to research author Dr Windsor Holden, “Some retailers, particularly those with a strong dependency on grocery, believe that moving spend to online was counterproductive, given the high levels of marginal costs and the perception of reduced customer loyalty. However, development of a successful, integrated omnichannel offering can ultimately enhance loyalty levels and increase consumer-spend levels.”
The research pointed out that Wal-Mart – with annual sales of around $480 billion across all channels, but overwhelmingly instore – has demonstrated its commitment to facilitating an integrated experience. The retailer has recently announced the creation of an ‘innovation hub’, Store No 8, to focus on technologies that can drive retail opportunities in future, including robots, VR/AR and AI.
Juniper Research is acknowledged as the leading analyst house in the digital commerce and fintech sector, delivering pioneering research into payments, banking and financial services for more than a decade.
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