Half of Yorkshire’s retail sales to be made online in 10 years

Research from transatlantic law firm Womble Bond Dickinson claims that changing demographics, few physical stores and the development of faster, cheaper home delivery services will see more than 50 per cent of British retail activity take place online.

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In its The Digital Tipping Point document, published today, it predicts that so-called General Zs and Millennials (defined as those under the age of 37) will account for half of all adult consumers by 2029 and that their experience of retail will be predominantly digital.

Online shopping currently accounts of 19 per cent of all sales but as the UK adult population evolves over the next decade the shopping habits of younger groups will become more dominant.

The research conducted by Retail Economics showed that 62 per cent of 16-24 year olds (Gen Z) shop online at least every fortnight, compared with just 29 per cent aged over 65.

Millennials also spend the highest proportion online, currently 22.1 per cent, averaging £42.32 per online transaction and spending £110.45 online each month.

More than half of Gen Z consumers said smartphones influenced them most in terms of ‘awareness’ of new retailers and brands. For those over 65 this statistic falls to just three per cent.

However almost a quarter of Gen Zs also said they are more likely to do shopping in high streets and shopping centres, highlighting the complexity of the customer journey and the importance of shopping experiences for these younger consumers.

Richard Lim, Retail Economics, said: “It’s no exaggeration to say that the retail industry is undergoing a period of unprecedented change. Despite concurrent waves of political and economic upheaval in our midst, our work with retailers suggest this is a mere distraction from the seismic structural shifts reshaping the retail landscape.

“Successful retailers have always had to reinvent themselves to stay relevant. However, the pace of change will inevitably prove too fast for many – as shown by the number of CVAs hitting the headlines. While the impact of future technologies and consumer acceptance is highly uncertain, it definitely feels like the digital retail-revolution is only just getting started.”

The data will spark concern for the future of Yorkshire’s high streets.

Research published in the Spring from PwC and the Local Data Company showed that the number of retail outlets vanishing from Yorkshire’s high streets to be at a five year high.

A total of 226 shops closed on Yorkshire’s high streets during 2018.

With more consumers turning to online for even mundane purchases, demand for retail property is at its lowest since 2007

Gavin Matthews, head of retail at Womble Bond Dickinson, which has a large presence in Leeds, said that the rise of online retail would pose risks for companies who fail to adequately protect consumer data.

He said: “As retailers leverage new technologies to support this growth, new risks also emerge. Consumers are increasingly conscious of the need to protect personal data and their privacy in order to reduce the risk of fraud, identity theft and misuse of their data.

“Real damage can be done to a retailer’s brand and reputation with any data breach and loss of trust can have far reaching consequences for any business and its bottom line.”