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Richard Lim, CEO of Retail Economics discusses the evolution of the online channel in the UK and the impact of Covid-19. There is a seismic shift happening towards the online channel accelerated by the impact of Covid-19. Even prior to the pandemic, the pace of behavioural change was already catching many retailers off guard. 12 years ago when the first iPhone was launched, the online penetration rates was about 5%. Last year (2019) it averaged 20%. We forecast an average penetration rate of around 25% as the impact of Covid-19 necessitates a shift towards online.
New cohort of customers are emerging with new customer journeys being taken – overcoming barriers to setting up accounts etc. This exposes customers to new journeys – some of this behaviour will stick. It’s probably easier to assume that these are typically older consumers, but in reality the correlation between age and this new wave of online shoppers is not as strong as expected. A lot of these consumers are young consumers, shopping in categories that they would traditionally shop for in-store. And actually, rather than age, this new cohort of consumers is better reflective of the “slow adopters” in society.
These customers present a significant opportunity for retailers reach out to new customers. But simultaneously, many retailers continue to battle with too many stores, too much space, inflexible lease structures and rising costs which is inhibiting their ability to shift their business model towards a more digitally focused proposition.
Prior to the pandemic, we estimated that there was likely to be about 20% too much retail space that would leave the market over the next 10 years. The impact of the pandemic will only accelerate this shift. Retailers need to pre-empt these changes in the market and restructure their business models if they are to thrive in this 'new normal'.
The retail industry is evolving at a blistering pace. Many brands and retailers are struggling to pivot their business models fast enough in order to...
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The retail industry is evolving at a blistering pace. Many brands and retailers are struggling to pivot their business models fast enough in order to...
The retail customer journey is forever evolving. However, a new type of customer journey is starting to take form and is rapidly heading our way....
The overall health of the retail economy is intrinsically linked to consumer debt. Were you aware that consumer debt in the UK essentially comprises mortgages...
Richard Lim, CEO, Retail Economics discusses the rising importance of the experience economy and its impact on the retail industry as we rapidly move towards...
Richard Lim, CEO of Retail Economics discusses 'Retail Property' and the associated impacts from structural change unfolding within the industry in 2019. "The impact of...
Richard Lim, CEO of Retail Economics discusses the 'Economic Outlook for UK Retail in 2019' from a macroeconomic perspective. Topics covered... The macroeconomic environment: GDP...
Richard Lim, CEO of Retail Economics discusses the 'Outlook for UK Retail 2019' and the challenges facing the retail sector. Topics covered include the ongoing channel...
Discussion on the key issues for UK retail as we head towards 2020. Kate Hardcastle (Founding Partner, Insight with Passion), Andrew Busby (CEO, Retail Reflections) and...
Kate Hardcastle MBE (Co-founder, Insight with Passion), Andrew Busby (CEO, Retail Reflections) and Richard Lim (CEO, Retail Economics) conduct a fireside chat, discussing the state...
Speaking at the 'Insight with Passion 2019 breakfast conference' in London with Kate Hardcastle and Andrew Busby, Richard Lim discusses what he sees as the...
Highlights from Richard Lim, CEO Retail Economics speaking at the Hitwise Summer Summit 2019.
Full presentation from Richard Lim, CEO Retail Economics speaking at the Hitwise Summer Summit 2019 on the outlook for UK Retail in 2019. Richard also...
Richard responds to the question highlighting the fact that the pace of change for retailers is essentially the biggest challenge for online retailers in 2019.
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Richard Lim, CEO of Retail Economics discusses the evolution of the online channel in the UK and the impact of Covid-19. There is a seismic...
Covid-19 has effectively accelerated the shift towards online retailing at a blistering pace. Many UK retailers and brands are struggling to keep up with the...
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Watch our 10 Retail Trends in 2021 presented in a 'quick-fire' fashion by Richard Lim, CEO of Retail Economics.
The world of retail is moving...
Retail Economics is an independent economics research consultancy focused on the UK consumer and retail industry. We analyse the complex retail economic landscape and...