Digital will play a role in European retail sales worth €1 trillion by 2021, new analysis suggests.
In all, 55% of sales in the leading seven European markets – which include the UK – will either take place online or be influenced by online channels from social to mobile, suggests the Forrester report, Digital-Influenced Retail Sales Forecast, 2017 to 2022.
It envisages around 45% of offline retail sales, worth €768bn, will be influenced by digital channels by 2022, and suggests that digital influenced sales will grow by a compound annual growth rate of 7.5% between 2017 and 2022.
Already, says report author Satish Meena, nearly 75% of adults in the seven markets shop online and use the internet to find an research products. “Online is steadily increasing in importance,” he said. “We forecast that 55% of al EU-7 retail sales in 2022 will either take place online or be digitally influenced offline sales - and they will surpass more than €1 trillion in sales in 2021.”
Smartphones, tablets, marketplaces and online advertising are, says the report, all key drivers of digital’s increasing influence in retail sales. Smartphones and tablets alone are expected to influence retail sales worth €620bn by 2022, up from €306bn in 2017.
The report suggests that Amazon’s role as an influencer and leading source of information at each stage of the customer journey will develop in coming years as its position in voice commerce develops. It also sees a growing role for marketplaces influencing offline sales. “Amazon plans to take advantage of this strength and build its own search advertising business, and retailers will increasingly allocate advertising dollars to Amazon,” suggests the report.