Online retail expenditure in the UK is forecast to rise by 44.9% in the coming five years to reach £62.7bn in 2020, according to analysts at Verdict.

Its research suggests that by 2020 online will account for 17.1% of total retail sales – up from 13.8% in 2015.

20% of clothing & footwear spend to be spent online in 2015

The online clothing & footwear market will be worth £10.1bn in 2015, meaning that £1 in every £5 will be spent online, Verdict says. With growth forecast at 79.1% in the next five years, it will overtake electricals to become the largest online market next year, and by 2020 will reach 28.8% of UK online spend.

However, with the majority of clothing & footwear retailers now online, except most notably Primark, and a shrinking number of sector shoppers yet to try the online channel, growth is slowing year-on-year.

Verdict says retailers must drive up spend per head and the frequency of purchases via “regular newness, delivery saver memberships, online exclusives and daily editorial content to drive traffic and maintain market growth”.

Multi-device shopping overtakes desktop/laptop only

Multi-device shopping has become the dominant method of buying online. Around half (52%) of online shoppers use more than one device to make online purchases in 2014, compared to just 30% in 2012. 74% of online shoppers in the 25–34 year old age group use multiple devices for online shopping, highlighting it is now the norm to switch between devices.

“The online shopping process is increasing in complexity as mobile devices become more influential, especially in terms of pre-purchase browsing,” says Verdict senior retail analyst Kate Ormrod. “As consumer attitudes toward buying online via mobile devices are changing, a consistent shopping experience across multiple devices is imperative to capture spend and loyalty.”

68% of online shoppers have used click & collect

Click & collect will outperform the overall online market, with spend increasing by 78.8% between 2015 and 2020. Around two thirds of online shoppers have used click & collect, compared to 51% in 2012, with 52% of shoppers who do not use click & collect planning to start using the service.

“Click & collect has become a mainstream fulfilment option for online shoppers due to the convenience and control it offers, with 40% of shoppers using the service to avoid or cut reduce home delivery charges,” says Verdict.

Click on the images on the right to see the figures illustrated as infographics