Its no question that 2020 and the arrival of Covid-19 has a had an immense and undeniable effect of business that rely on the sale of physical good. So, its unsurprising to see such a sudden growth in eCommerce. Its estimated that during 2020 the movement to online based stores has matched the predictions that where originally expected to take until 2025.
Without a doubt the movement online is directly linked to the Lockdown period, while department stores are expected to decline by over 60%, e-commerce is expected to grow by nearly 20% in 2020. The time in lockdown has caused an e-commerce boom, with the pandemic accelerating the shift away from physical stores by roughly five years.
With the ongoing restrictions and the possibility of another lockdown, not making the move to an ecommerce platform could prove to be servery detrimental to businesses for the foreseeable future if not longer. Customers are simply less willing to venture into a physical store.
The pandemic has also helped redefine what consumers feel are essential purchases, A recent study found. Clothing, for example, declined in importance as more consumers began working and schooling from home, as well as social distancing under government lockdowns. However, other categories, including groceries, alcohol and home improvement materials, have seen significant growth.
Is eCommerce the right solution for your business?
With online sales higher than ever, there has never been a better time to make the jump to utilize an online sales platform alongside your physical store. An investment now could be the key to safeguarding you from and uncertain future. Another lockdown could be devastating for many small to medium-sized retailers and with social distancing and government advice to minimize unnecessary trips still very much a part of life, there is certainly no end in sight yet to the turbulent and unpredictable year so far.
The figures speak for themselves,
Online sales in the UK are now expected to grow from initial predictions of 11% to 19% in 2020, reaching £78.9bn, £5.3bn more than was predicted for 2020 before Covid-19. This is up from £66.3bn in 2019.
Interested in learning more about how COVID-19 is impacting retail? Check out Edge by Ascential’s Retail Insight Reforecasting for COVID-19 resource page.
By Tommy Atkins
Owner Axiom Web