US web retail sales to hit $249bn over the next five years
Online retail sales in both the US and Western Europe are expected to see a double-digit growth over the next five years, according to two new forecasts by Forrester Research.
The study found that US online retail sales will grow at a 10% compound annual growth rate (CAGR) over the next five years to reach nearly $249bn by 2014, while online retail within the largest European Union nations in Western Europe will increase at 11% CAGR over the same period, hitting €114bn by 2014.
While 82% of US online consumers are satisfied with buying experiences that began and ended in a store, satisfaction drops to 61% for consumers who began their research online and purchased in a store, the study found.
Web shopping is expected to account for 8% of total retail sales by 2014 in the US with three product categories apparel, footwear, and accessories; consumer electronics; and consumer hardware, software, and peripherals dominating online retail, according to Forrester’s data.
The firm expects that by 2014, 53% of total retail sales in the US will be influenced by eCommerce as consumers increasingly use the internet to research products before purchasing.
According to the research firm, increased online tenure, improved access and greater promotion by retailers will drive the number of online shoppers in Europe from 141 million in 2009 to 190 million by 2014 and the average spend per online shopper will rise from €483 in 2009 to €601 in 2014.
Among the three largest EU markets, online retail will grow at a 10% CAGR over the next five years in the UK; 95 in Germany; and 13% in France. The Forrester online retail forecasts for the US and the EU include business-to-consumer sales excluding auto, travel, and prescription drugs.
Patti Freeman Evans, vice president and research director of Forrester Research, said: There is a clear divide between the countries of Northern and Southern Europe regarding online retail adoption. While nearly half of UK residents regularly make a purchase online, a mere 10% of online Spaniards and 11% of online Italians do so today. Still, with compound annual growth rates approaching 20% in markets like Spain, emerging European eCommerce markets are poised for a vigorous period of growth.