e-Retail in the UK
Report Details:
Published:September 2012
No. of Pages: 275
Price: Single User License – US$4495
As consumers increasingly expect the convenience of shopping from anywhere at anytime the
multichannel model is becoming a key element in retail. Understand how new technologies can be
used in the market to enhance e-retail as well as pinpoint where the opportunities and threats are
and how to manage these most effectively for your business.
Features and Benefits
•Take advantage of new technologies to improve your multichannel offer and enhance the
shopper experience
•Use the data, forecasts to 2016, and insight on the online sector to help form an effective growth
strategy
•Use consumer data to understand customer profiles and identify where the underpenetrated
sectors are
•Identify the threats as well as the opportunities to grow business in this channel by looking at the
key issues
Highlights
Though growth in online spending is slowing, it is set to rise by 15.0% to £31.2m in 2012. The
greater convenience of shopping online will continue to resonate with an increasingly time-poor
shopper while advantages that online retailers have over physical stores will continue to make
using this channel more appealing to customers
When comparing age groups, shoppers aged between 15 and 24 and over 55 are below average
for shopper penetration and spend per head providing opportunities for growth
Since the first widely sold tablet was launched in 2010, this new technology has continued to
increase in popularity. According to our e-retail survey, 7.4% of those that shop online used a
tablet to do so in 2011, and we expect this to rise going forward as they continue to provide
consumers with a new, easier way to shop
Your key questions answered
•How is m-commerce impacting on the online model and how can I my business take advantage

of this?
•Which customers present the most opportunities for growth going forward and what sectors will
outperform/underperform?
•What are the factors that will impede or maximise future growth opportunities online?
Get your copy of this report @
http://www.reportsnreports.com/reports/191883-e-retail-in-the-uk.html
Major points covered in Table of Contents of this report include
EXECUTIVE SUMMARY
Key findings
Online spend will increase by £4.1m to £31.2m in 2012 …
… and £1.00 in every £7.00 to be spent online in 2016;
Another 1.4 million people begin shopping online;
Significant gains to be made online among 15–24 year olds and 55+ shoppers;
Tablets will open online shopping up to new consumers;
Retailers must invest in mobile friendly sites;
Social media continues upwards trajectory;
Emerging markets increasingly attractive;
Online will claim the majority share of the books market;
Music & video sales to be virtually all online by 2016;
Becoming multichannel next stage for clothing & footwear retailers;
Specialist furniture & floorcoverings retailers must improve websites to benefit from pent up
demand;
While online health & beauty sales growth will slow, it remains strong.
Main conclusions
Online spend will increase by £4.1m to £31.2m in 2012
Another 1.4 million people begin shopping online
Significant gains to be made online among 15–24 year olds and 55+ shoppers
Tablets will open online shopping up to new consumers
Retailers must invest in mobile friendly sites
Social media continues upwards trajectory
Emerging markets increasingly attractive
Music & video sales to be virtually all online by 2016
Online will claim the majority share of the books market
Becoming multichannel next stage for clothing & footwear retailers
Specialist furniture & floorcoverings retailers must improve websites to benefit from pent up
demand
While online health & beauty sales growth will slow, it remains strong
MARKET SUMMARY & FORECAST
Online spending growth and forecasts
Channel begins to mature but plenty of opportunity remains

Internet access and numbers of shoppers online
(Untitled sub-section)
Spend per head set to slow
More value conscious shoppers boost spend per head during the downturn
Growth has been driven by volume
Number of shopping trips continues to increase while transaction size remains static
OUTLOOK
Key issues
Technology
M-commerce makes online shopping more accessible than ever
Mobile as a payment device provides big opportunities
Tablets will open online shopping up to new consumers
Making shop assistants multichannel will get shoppers online
Offering free Wi-Fi instore
Underpenetrated sectors
Significant gains to be made online among younger and older shoppers
Over 55 shoppers will become more important to online retailers in the next five years
International expansion
Emerging markets are increasingly attractive
Customer engagement, loyalty, and trust
Security fears still hold back online channel
Personalising websites to target consumers’ needs
In the right sectors, premium delivery services can bring in greater returns
Social interaction can increase trust and boost sales
Celebrity endorsements still have a place online
Pureplay retailers opening stores
CONSUMER ANALYSIS
Summary
Percentage of Internet users turning to online shopping rises 1.3 points
ABC1s continue to lead the way
Online shopping habits by gender
Women overtake men for the first time
Men continue to spend more than women
Online shopping habits by age
Over-55s continue to lead for Internet access, now numbering over 10 million
35–44s made many more shopping trips in 2011
35–44s spent significantly more online in 2011
25–34s rein in their spending
Online shopping habits by socioeconomic group
Internet access continues its steady growth across all socioeconomic groups
C2 online shoppers decline in number while DEs record highest growth
DEs spent £1.2bn more in 2011 than 2010

C2 average spend rises
Average transaction size for DEs has shot up
Online versus instore shopping
Online continues to be the channel of choice
Convenience remains the key driver to shop online
Reasons to shop online and satisfaction levels
Returning goods remains a sticking point
Reputation has become increasingly important
Shoppers increasingly embrace the more social side of online retailing
Security issues
Retailer reputation
Value issues
Technical issues
Personalised and interactive features of websites
Product information
User friendliness
Multichannel habits
(Untitled sub-section)
Click & collect continues to grow
SECTOR OVERVIEW
While electricals retains top spot, food & grocery and clothing & footwear gain ground
Clothing & footwear top for growth for fourth straight year
Continued shift towards downloading ensures online dominates music & video market
Strong growth of clothing & footwear driven by greatest number of shoppers
Sharp decline in female DIY shoppers puts it bottom for women (and top for men from third)
Health & beauty pushes ahead of DIY for spend per head in positions seven and eight
Music & video pushes ahead of electricals in third and fourth places for frequency of shop
Convenience and cheaper products remain main drivers for online shopping
Free delivery is the top selling point for all online sectors barring DIY
Company reputation scores more highly when selecting a retailer
Cheap delivery becomes more important than fast delivery
Clothing & footwear knocks books off top of research chart
Books
Online will account for over half of all book sales in 2013
A further 2 million shoppers will buy books online by 2016
We expect spend per head growth to peak in 2012
Rise of e-books reduces average spend
The norm for online books shoppers is 5–10 visits per year
Women have increased both their spending and their share of the market
Over-55s are increasingly taking to online book shopping
Convenience recovers following a fall in score in 2010
Online leads the way for most factors versus bricks and mortar stores…

Major players
Outlook
Clothing & footwear
Online continues to outperform sector
Clothing & footwear gains an extra 1.7m internet shoppers in 2011
Spend per head continues to rise – though growth rate slows
Spend per year shifts up
Just under one in four shop 5–10 times a year
More than half of all internet shoppers shop clothing & footwear
DE shoppers return while 55+ shoppers stay away
More consumers cite time saving as a reason to shop for clothing & footwear online
Shift from online to instore emerges
Major players
Outlook
DIY & gardening
Online market impacted by weak conditions and rise of click & collect
Shopper numbers increase year-on-year following dip in 2011
While growing from 2013 onwards, spend per head will only improve by 4.0% between
2011 and 2016
Proportion of smaller purchases increases as shoppers cut back
While frequency average declines slightly, regular shoppers are still a significant proportion
Shopper numbers and spend shift decisively towards men
Penetration remains highest of older, more affluent customers
Convenience remains king but lower prices gain ground
More shoppers find online better than instore for DIY & gardening shopping
Major players
Outlook
Electricals
We expect power surge for proportion of electricals sales via online in 2012
Growth among shopper numbers set to slow
Squeezed midmarket forcing some shoppers to rein in their spending
Sharp increase in the proportion of shoppers buying more than 31 times per year
Shopper numbers and spend decline sharply for women
More cautious shoppers impact online electricals across all demographic groups
Price and convenience continue to be the main reasons why shoppers go online
Improvements in preferring to shop online indicate that the less loyal have been stripped
out
Retailers need to stay on top of convenience
Major players
Outlook
Food & grocery
Growth stems from improved delivery and ranges

Shopper numbers rise as recruitment continues
Young affluent males provide fillip to growth
Major players
Outlook
Furniture & floorcoverings
A more affluent customer helps drive strong growth
… and there will be spend per head growth – peaking in 2014 as pent-up demand is
satisfied
Spend per year below £40.00 makes up greater proportion
AB shoppers account for increase in frequency of visits between 5–10 times per year
Now women account for the majority of spend on F&F online
Overall penetration improves but remains the lowest among all sectors
Top Three reasons the same as year before
Shift from online to instore emerges
Major players
Outlook
Health & beauty
Hard to beat instore enjoyment factor but lowest online share leaves opportunity to build
sales
Shopper numbers recover after fall in 2010
Spend per head grows steadily
Men drive increase in proportion of shoppers making more than 31 visits a year
Females continue to dominate
Female ABs are main shoppers
Convenience dominates online
Major players
Outlook
Homewares
Online homewares sees largest growth for three years
An additional 2 million people are expected to buy their homewares online by 2016
Spend per head will increase by around 12.5% between 2011 and 2016
Around a quarter of internet shoppers spend £20.00 or less per year
One fifth of all online homewares shoppers make 50 or more visits
Fewer men than women shop online for homewares, but men account for majority of
spend
The number of DEs shopping for homewares online has shot up
Convenience picks up again after faltering in 2010
Online leads instore by a considerable margin in seven categories
Major players
Outlook
Music & video
(Untitled sub-section)

Music & video’s share of online shoppers will remain virtually flat
Spend per head will fall out to 2016
More shoppers spend less on music & video
Shopping frequency has gradually declined over 2010
Males account for two-thirds of spend online
25–34s are keener on shopping online for music & video
Convenience bounces back
Instore still lags behind online in numerous categories
Major players
Outlook
APPENDIX
Glossary
Glossary
Ask the analyst
Global Retail FreeView
Disclaimer
TABLES
Table: Online spending growth 2006–11 & forecast to 2016e
Table: 10 most shopped retailers via m-commerce in 2011
Table: Internet users and online shopper profiles, 2011
Table: Profile of online shoppers, 2006–11
Table: Online shopper penetration, 2006–11
Table: Number of online shoppers by age group, 2006–11
Table: Online spending by sector 2006–11
Table: Sector sales year-on-year change % 2006–11
Table: Percentage of each sector's sales via online 2006–11
Table: Online shopping population by sector 2011
Table: Online spend per head by sector (A–G) 2011
Table: Online spend per head by sector (H–Z) 2011
Table: Frequency of shopping by sector 2011
Table: Why the internet is chosen for making purchase by sector 2011
Table: What is important when shopping online by sector A–E October 2011
Table: What is important when shopping online by sector F–Z October 2011
Table: Why buy from one retailer in preference to another by sector A–E 2011
Table: Why buy from one retailer in preference to another by sector F–Z 2011
Table: Why return to a website % of online shoppers by sector A–E October 2011
Table: Why return to a website % of online shoppers by sector F–Z October 2011
Table: Percentage of all online shoppers researching before purchasing – by sector 2011
Table: Online books market 2006–11 and forecast to 2016
Table: Online books shopping population 2007–16
Table: Spend per year on books online 2011
Table: Frequency of shopping for books online 2011

Table: Gender breakdown of online books market 2011
Table: Online clothing & footwear market 2006–11 & forecast to 2016
Table: Online clothing & footwear shopping population 2007–16
Table: Spend per year on clothing & footwear online 2011
Table: Frequency of shopping for clothing & footwear online 2011
Table: Gender breakdown of online clothing & footwear market 2011
Table: Online DIY & gardening market 2006–11 & forecast to 2016
Table: Online DIY & gardening shopping population 2007–16
Table: Spend per year on DIY & gardening online 2011
Table: Frequency of shopping for DIY & gardening online 2011
Table: Gender breakdown of online DIY & gardening market 2011
Table: Online electricals market 2006–11 & forecast to 2016
Table: Online electricals shopping population 2007–16
Table: Spend per year on electricals online 2011
Table: Frequency of shopping for electricals online 2011
Table: Gender breakdown of online electricals market 2011
Table: Online food & grocery market 2006–11 and forecast to 2016
Table: Online food & grocery shopping population 2007–16
Table: Spend per year on food & grocery online 2011
Table: Frequency of shopping for food & grocery online 2011
Table: Gender breakdown of online food & grocery market 2011
Table: Online grocery delivery terms 2012
Table: Online furniture & floorcoverings market 2006–11 & forecast to 2016
Table: Online furniture & floorcoverings shopping population 2007–16
Table: Spend per year on furniture & floorcoverings online 2011
Table: Frequency of shopping for furniture & floorcoverings online 2011
Table: Gender breakdown of online furniture & floorcoverings market 2011
Table: Online health & beauty market 2006–11 & forecast to 2016
Table: Online health & beauty shopping population 2007–16
Table: Spend per year on health & beauty online 2011
Table: Frequency of shopping for health & beauty online 2011
Table: Gender breakdown of online health & beauty market 2011
Table: Online homewares market 2006–11 & forecast to 2016
Table: Online homewares shopping population 2007–16
Table: Spend per year on homewares online 2011
Table: Frequency of shopping for homewares online 2011
Table: Gender breakdown of online homewares market 2011
Table: Online music & video market 2006–11 and forecast to 2016
Table: Online music & video shopping population 2007–16
Table: Spend per year on music & video online 2011
Table: Frequency of shopping for music & video online 2011
Table: Gender breakdown of online music & video market 2011

FIGURES
Figure: Online expenditure and growth 2011–16
Figure: Online sales as a percentage of total UK retail 2011–16
Figure: Internet access 2011–16
Figure: Online shoppers as % of those with internet access 2011–16
Figure: Number of online shoppers and y-o-y growth % 2011–16
Figure: Average online spend per head 2006–11
Figure: Average online spend per head 2011–16
Figure: Online shopping trips per year and average transaction value 2006–11
Figure: E-retail key issues 2012
Figure: Most utilised retail-related mobile functions 2011 on 2010
Figure: Mobile payment solutions 2012
Figure: Benefits and drawbacks of mobile payments 2012
Figure: How tablets will attract more shoppers 2012
Figure: Driving multichannel through shop assistants 2012
Figure: Benefits and drawbacks of offering free Wi-Fi instore 2012
Figure: Which customer segments are underpenetrated and how can this be improved 2012
Figure: Penetration and spend per head by age group 2011
Figure: Penetration compared to average penetration for 16–24 year old shoppers from How
Britain Shops and e-retail
Figure: Barriers facing online shoppers aged 15–24, 2011
Figure: ASOS Fashion Finder, August 2012
Figure: 15–24 year old shoppers find high street shopping better for speed of purchase 2011
Figure: Growth among online shopper numbers by age group 2011–16
Figure: Lack of knowing how to shop online is a barrier for shoppers aged over 55, 2011
Figure: Example of NatWest’s instant messenger help service 2012
Figure: E-commerce players delivering to each country, 2012
Figure: ASOS’s dedicated German e-store, 2012
Figure: Apple’s dedicated Swedish e-store, 2012
Figure: Problems and solutions for online security 2012
Figure: Value of online fraud 2004–11
Figure: The fear of fraud and its impact on those affected 2011
Figure: Shoppers worried about giving financial details online, % by age group 2011
Figure: Striking the balance between security and usability 2012
Figure: Recent innovations in payment cards to improve online security 2012
Figure: Amazon’s personalised homepage 2012
Figure: BBC personalised homepage 2012
Figure: Amazon’s Prime service 2012
Figure: Ocado Delivery Pass 2012
Figure: Topshop customer review email 2012
Figure: Justin Timberlake celebrity endorsement, 2012
Figure: Store opportunities for pureplayers 2012

Figure: Simply Be store 2012
Figure: eBay Christmas boutique 2011
Figure: Uses cited for the Internet, 2010 and 2011
Figure: Online shoppers penetration % of all adults, by region, 2011
Figure: Internet access, by gender, 2008–11
Figure: Number of online shoppers, by gender, 2008–11
Figure: Online shoppers breakdown, by gender, 2007–11
Figure: Total online spending, by gender, 2006–11
Figure: Average spend per head, by gender, 2006–11
Figure: Average number of online shopping trips in the past 12 months, by gender, 2008–11
Figure: Internet access, by age, 2008–11
Figure: Profile of online shoppers, by age group, 2008–11
Figure: Average number of online shopping trips in the past 12 months, by age, 2008–11
Figure: Age breakdown of Internet food & non-food shopping usage, %, 2011
Figure: Online spend, by age group, 2008–11
Figure: Average spend per head, by age group, 2008–11
Figure: Average transaction size, by age, 2008–11
Figure: Internet access, by socioeconomic group, 2008–11
Figure: Number of online shoppers, by socioeconomic group, 2008–11
Figure: Socioeconomic profile of Internet shoppers, 2007–11
Figure: Average online shopping trips in past 12 months, by socioeconomic group, 2008–11
Figure: Total online spending, by socioeconomic group, 2008–11
Figure: Average spend per head, by socioeconomic group, 2008–11
Figure: Average transaction size, by socioeconomic group, 2008–11
Figure: Consumers preference for shopping method, 2008–11
Figure: Why the Internet was chosen for purchase, overall e-retail, 2009–11
Figure: Online shopping versus physical shopping, October 2011
Figure: Consumer satisfaction with online retail, 2011
Figure: Top 10 reasons to buy from one site over another, 2009–11
Figure: Consumer attitudes to online reviews, 2009–11
Figure: Importance of customer reviews on website, by age, 2010 and 2011
Figure: Importance of shopper communities and forums, by age, 2010 and 2011
Figure: Importance of customer Q&A on website, by age, 2010 and 2011
Figure: Shoppers preferring to shop on sites with trusted certification bodies, 2010 and 2011
Figure: Shoppers worried about giving out financial details online, 2010 and 2011
Figure: Consumer attitudes – retailer reputation preferences, 2010 and 2011
Figure: Prices online are generally cheaper than instore, by age, 2010 and 2011
Figure: Delivery charges are a problem when shopping online, by age, 2010 and 2011
Figure: Finding what you want to purchase online is difficult, by age, 2010 and 2011
Figure: More convenient to buy instore than wait for a delivery, by age, 2010 and 2011
Figure: Receiving postal deliveries is difficult when shopping online, by age, 2010 and 2011
Figure: Importance of interactive features on websites, by age, 2010 and 2011

Figure: Importance of personalisation of website, by age, 2010 and 2011
Figure: Importance of pictures and videos, by age, 2010 and 2011
Figure: Importance of product recommendations, by age, 2010 and 2011
Figure: Importance of product suggestions, by age, 2010 and 2011
Figure: Importance of product reviews, by age, 2010 and 2011
Figure: Importance of buying guides, by age, 2010 and 2011
Figure: Importance of free delivery, by age, 2010 and 2011
Figure: Importance of choice of delivery time, by age, 2010 and 2011
Figure: Importance of free and easy returns policy, by age, 2010 and 2011
Figure: Importance of site being easy to use and navigate, by age, 2010 and 2011
Figure: Importance of easy-to-use and effective search engine, by age, 2010 and 2011
Figure: Importance of a quick and easy payment/checkout system, by age, 2010 and 2011
Figure: Importance of being able to contact the retailer, by age, 2010 and 2011
Figure: Importance of efficient and useful help function, by age, 2010 and 2011
Figure: Research online before buying instore, by demographics, 2010 and 2011
Figure: Research instore before buying online, by demographics, 2010 and 2011
Figure: Compare websites before buying online, by demographics, 2010 and 2011
Figure: Use mobile to research before shopping, by demographics, 2010 and 2011
Figure: Use mobile to research while shopping, by demographics, 2010 and 2011
Figure: Click & collect penetration – pay online, by demographics, 2010 and 2011
Figure: Click & collect penetration – pay instore, by demographics, 2010 and 2011
Figure: Top 10 methods of finding a website, 2009–11
Figure: Percentage breakdown of online spending by sector 2011
Figure: Online gender split of shopper numbers by sector 2011
Figure: Spend per head on books online 2011–16
Figure: % of internet shoppers who shop for books 2009–11
Figure: Reasons why consumers chose the Internet to shop for books, 2009–11
Figure: Instore vs online in books 2011
Figure: Top nine books retailers online – where shoppers bought online 2010 and 2011
Figure: Spend per head on clothing & footwear online 2011–16
Figure: Part of a Next online mailer August 2012
Figure: ASOS premier service August 2012
Figure: % of internet shoppers who shop for clothing & footwear 2009–11
Figure: Reasons why consumers chose the internet to shop for clothing & footwear 2009–11
Figure: Instore vs online in clothing & footwear 2011
Figure: Top 10 clothing & footwear websites where shoppers bought online 2011 on 2010
Figure: Burberry bespoke 2012
Figure: Spend per head on DIY & gardening online 2011–16
Figure: % of internet shoppers who shop for DIY & gardening 2009–11
Figure: Reasons why consumers chose the internet to shop for DIY & gardening 2009–11
Figure: Instore vs online in DIY & gardening 2011
Figure: Top 10 DIY & gardening online retailers – where shoppers bought online 2011 on

2010
Figure: Spend per head on electricals online 2011–16
Figure: % of internet shoppers who shop for electricals 2009–11
Figure: Reasons why consumers chose the internet to shop electricals 2009–11
Figure: Instore vs online in electricals 2011
Figure: Top 10 electricals online retailers – where shoppers bought online 2011 on 2010
Figure: Spend per head on food & grocery online 2011–16
Figure: % of internet shoppers who shop for food & grocery 2009–11
Figure: Reasons why consumers chose the Internet to shop for food & grocery 2009–11
Figure: Instore versus online in food & grocery 2011
Figure: Top nine food & grocery retailers where shoppers bought online 2011 on 2010
Figure: Tesco Delivery Saver 2012
Figure: Tesco click and collect 2012
Figure: Asda click and collect 2012
Figure: Asda free delivery offer summer 2012
Figure: Asda QuickShop 2012
Figure: Sainsbury's Live Well For Less site 2012
Figure: Traceability – Food heroes 2012
Figure: Personal Shopper profiling 2012
Figure: Ocado shopping wall, One New Change London 2011
Figure: Freshdirect 2011
Figure: Hubbub delivery service for independent food specialists 2012
Figure: Ocado and BBC food link-up 2012
Figure: Carrefour Mon Panier app 2012
Figure: Delhaize shopping cubes 2012
Figure: Recommendations by Asda 2012
Figure: Spend per head on furniture & floorcoverings online 2011–16
Figure: % of internet shoppers who shop for furniture & floorcoverings 2009–11
Figure: Why consumers chose the internet to shop for furniture & floorcoverings 2009–11
Figure: Instore vs online in furniture & floorcoverings 2011
Figure: Top 11 furniture & floorcoverings sites where shoppers bought online 2011 on 2010
Figure: Spend per head on health & beauty online 2011–16
Figure: % of internet shoppers who shop for health & beauty 2009–11
Figure: Reasons why consumers chose the internet to shop for health & beauty 2009–11
Figure: Instore vs online in health & beauty 2011
Figure: Top Eight health & beauty retailers where shoppers bought online 2011 on 2010
Figure: Spend per head on homewares online, 2011–16
Figure: % of internet shoppers who shop for homewares 2009–11
Figure: Reasons why consumers chose the Internet to shop for homewares 2009–11
Figure: Instore vs online in homewares 2011
Figure: Top 10 homewares online retailers – where shoppers bought online 2011 on 2010
Figure: Spend per head on music & video online 2011–16

Figure: % of internet shoppers who shop for music & video 2009–11
Figure: Reasons why consumers chose the internet to shop for music & video 2009–11
Figure: Instore vs online in music & video 2011
Figure: Top eight music & video online retailers where shoppers bought online 2011 on 2010
Contact: sales@reportsandreports.com for more information.