Prior to COVID-19, ecommerce was already well engaged in NI and picking up pace in RoI, however, 2020 saw a dramatic increase in online sales with grocery retailing a fast-growing category. This is driven by both new consumer entrants and existing purchasers buying more. Indeed, some 40% of NI and 25% of RoI consumers had bought groceries online in the three months to January 2021 – a significant increase from 2020’s usage of online groceries (32% NI, 13% RoI).

Store closures and social distancing measures resulted in consumers feeling anxious about in-store shopping and as such encouraged greater activity with online shopping, particularly among older consumers. This necessary switch to online has resulted in 54% of NI and 57% of RoI consumers agreeing that ‘COVID-19/coronavirus has made me more confident shopping online’ with four in 10 going as far as to say, ‘If possible, I would do all of my shopping online’. This has resulted in a permanent gain for ecommerce and will likely last for many years to come.

Brexit remains one of the biggest threats to the online market in Ireland, particularly RoI. Goods now travelling from mainland UK will be subject to more checks at the Irish sea border with retailers having to ensure proper, and in many cases lengthy, declarations are completed. UK companies selling into the EU including RoI now must register and file quarterly declarations, provide additional paperwork and customers may face custom fees/taxes upon delivery. This will no doubt raise prices within eight in 10 RoI and 67% of NI consumers ‘worried that it will be more expensive to buy goods online post-Brexit’.

• The impact of COVID-19 on consumer behaviour and ecommerce.

• The impact of Brexit and concerns surrounding delivery and custom fees to Ireland.

• The categories benefiting from the boost of online shopping and those struggling.

• The opportunities and threats for the online retail market going forward.

• This update on the impact that COVID-19 is having on the market was prepared on 19 March 2021.

• In RoI, the first COVID-19 cases were confirmed in February 2020, though numbers were small with the first death related to COVID-19 not recorded until 13 March 2020. One day previous, RoI was put into lockdown on 12 March.

• The first COVID-19 cases were confirmed in the UK at the end of January, with a small number of cases in February. As the case level rose, the UK government ordered the closure of non-essential stores on 20 March, which was adopted in NI and the region went into lockdown.

• Lockdown had eased in July 2020 but both NI and RoI have since been placed under tighter restrictions as a second wave emerged. In October 2020, NI/RoI was placed in a four/six-week lockdown with foodservice closures (excluding takeaway) and a continuation of these measures occurred in November.

• In December 2020, both NI and RoI were placed into another restrictive lockdown (including curfews, inter-county travel restrictions and non-essential retail and foodservice closures excluding takeaway) which will continue until April 2021.

• This Report examines the online and mobile retailing sector in Ireland, including market sizes, forecast analysis and consumer shopping habits via an online channel.

• Online and mobile retailing includes consumers ordering and paying for goods and services online via desktop/laptop computers and internet-connected mobile devices, including smartphones and tablets. By goods and services bought online, we mean anything from physical and digital items such as clothes, groceries and electronics to the purchase of a holiday and entertainment tickets (eg cinema).

• This Report will examine both pureplay (retailers that trade solely online, eg Amazon) and multichannel (have a physical and online presence, eg Tesco) retailers.