Online sales to grow 4 percent due to inflation
Non-food online sales in the United Kingdom, France, Germany, Italy and Spain are expected to grow up to 4 percent. This is mostly driven by rising prices due to inflation. At the same time, sales volumes are set to fall up to 5 percent.
These are some conclusions from new research by delivery software Metapack, payment provider Shipstation and economics research consultant Retail Economics. Over 730 retail businesses in 8 countries were surveyed, including the United Kingdom (UK), Germany, France, Spain and Italy.
Italian retail worth 200 billion euros in 2023
According to the report, non-food retail sales are expected to grow between 2.3 and 4 percent in the European markets. The highest growth is seen in Italy with sales amounting to over 200 billion euros in 2023. However, this 4 percent increase is mostly due to rising consumer prices. Namely, the sales volume in Europe is set to fall between 1.2 percent (Italy) and nearly 5 percent (UK).
Homeware and electronics most impacted
In the UK and Germany, over 30 percent of shoppers will only buy products if needed due to rising prices. This number is even higher in France, Italy and Spain. In these countries, nearly 60 percent of customers will only make a purchase if necessary.
32% will continue spending on health and beauty.
According to the report, the product category furniture and homeware is most at risk: 68 percent of consumers plan to delay or cancel their order. Home items are followed closely by electronics with 66 percent. On the upside, health & beauty has the most shoppers continuing their spending (32 percent).
Cost of delivery more important
Furthermore, shoppers value the cost of delivery more in 2023: this number is up 5 percent compared to last year. Simultaneously, only 22 percent prioritize delivery speed compared to 27 percent in 2022. Shipping convenience, such as choosing a time slot, has also dipped 5 percent in 2023.
5% more shoppers prioritize delivery cost in 2023.
Online shoppers are also less willing to pay for online returns, the report shows. While last year, 27 percent of consumers did not mind paying, this number falls to 24 percent in 2023.
Second-hand marketplaces more popular
Though shoppers are more picky due to inflation, there is a rising demand for second-hand marketplaces. Namely, one in four consumers say they plan to use these platforms more this year. This percentage is higher for shoppers that only want to buy necessary products, namely 39 percent.