Double-Digit Growth Forecasted for Online Retail in the U.S. and Western Europe
Online retail in both the U.S. and Western Europe remains poised for a robust period of double-digit growth over the next five years, according to two new forecasts by Forrester Research Inc.
U.S. online retail will grow at a 10 percent compound annual growth rate (CAGR) over the next five years to reach $249 billion by 2014, according to one report. Online retail within the largest European Union (E.U.) nations in Western Europe will grow at an 11 percent CAGR over the same period, hitting $114 billion euros by 2014, according to Forrester.
What's more, much of the overall retail sector’s growth in both the U.S. and the E.U. over the next five years will come online, the forecasts found. Additional findings from the study include the following:
- In the U.S., web shopping will account for 8 percent of total retail sales by 2014.
- Three product categories dominate online retail: apparel, footwear and accessories; consumer electronics; and consumer hardware, software and peripherals. Together, those categories represent more than 40 percent of total online retail sales in the U.S.
- By 2014, 53 percent of total retail sales in the U.S. will be influenced by e-commerce as consumers increasingly use the internet to research products before purchasing.
- 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. The average spend per online shopper will rise from 483 euros in 2009 to 601 euros in 2014.
- Books, event tickets and clothing are the top three categories purchased online in the majority of Western Europe.
- Among the three largest E.U. markets, online retail will grow at a 10 percent CAGR over the next five years in the U.K., 9 percent in Germany and 13 percent in France.