Table of Contents
Executive Summary
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- The market
- Online sales boom in 2020
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- Figure 1: Estimated online and mobile retail expenditure, NI and RoI, 2016-26
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- Figure 2: Expected impact of COVID-19 on online and mobile retailing, short, medium and long term, 19 March 2021
- Concerns mount that Brexit will cause price hikes
- Online demand threatens the high street
- Who’s innovating?
- The consumer
- Laptop/desktop and smartphone usage narrows for online shopping
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- Figure 3: Usage of devices to shop online in the last three months, by location, NI and RoI, January 2021
- Clothing was the most purchased item online
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- Figure 4: Items/services bought online in the last three months, NI and RoI, January 2021
- Data breaches and privacy concerns need to be addressed
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- Figure 5: Agreement with statements related to online and mobile retailing, NI and RoI, January 2021
- What we think
The Market – Key Takeaways
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- Online sales boom in 2020
- Brexit adds to uncertainty with consumers worried about price hikes
- Online demand threatens the high street
Market Size and Forecast
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- Short-, medium- and long-term impact on the industry
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- Figure 6: Expected impact of COVID-19 on online and mobile retailing, short, medium and long term, 19 March 2021
- Lockdown:
- Re-emergence:
- Recovery:
- Online shopping boost sees sales soar in 2020
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- Figure 7: Estimated online and mobile retail expenditure, IoI, NI and RoI, 2016-26
- Figure 8: Online sales as a percentage of all retail sales, Q1 2019-Q4 2020
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- Figure 9: Indexed online and mobile retail expenditure, NI and RoI, 2016-26
- Lessons learned from the last recession
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- Figure 10: Estimated value of online and mobile retail sales, NI and RoI, 2008-12
Market Drivers
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- Brexit causes price hike concerns
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- Figure 11: Agreement with the statement ‘I am worried that it will be more expensive to buy goods online from NI/Irish retailers post-Brexit’, NI and RoI, January 2021
- Consumer confidence is fragile, and spending continues to slow
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- Figure 12: Consumer agreement with the statements ‘I'm trying to add to my savings’ and ‘I'm finding it harder to make ends meet’, IoI, June 2020 and January 2021
- At-home purchases increase in 2021
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- Figure 13: Netted online purchases in the last three months, by location, NI and RoI, November 2019 vs January 2021
- Online shopping boom brings more struggles to the high street
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- Figure 14: Consumer agreement with the statements ‘I am shopping more online’ and ‘I am using click-and-collect more’, IoI, March 2020-February 2021
- Smartphone purchases on par with desktop/laptop computers
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- Figure 15: Devices used to make a purchase online in the last three months, NI and RoI, January 2021
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- Figure 16: Usage of devices to shop online in the last three months, NI and RoI, 2016-21
- 5G usage remains low
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- Figure 17: Consumers who are currently using a 5G network, NI and RoI, April 2020
- Figure 18: Reasons why consumers would switch to a 5G network, NI and RoI, April 2020
Companies and Innovations – Key Takeaways
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- Group shopping trips move online
- Tesco drone deliveries get trialled in Ireland
- AI becomes vital during the pandemic
Who’s Innovating?
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- Group shopping trips move online
- Google provides online help to SMEs in Ireland
- Tesco drone deliveries get trialled in Ireland
- Assisting the vulnerable via online solutions
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- Figure 19: Disagreement with the statement ‘COVID-19/coronavirus has made me more confident shopping online’, by age, NI and RoI, January 2021
- AI expected to cut down on returns
Company Profiles
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- Pureplay retailers
- Amazon
- ASOS
- Boohoo
- eBay
- The Very Group
- Multichannel retailers
- Arnotts
- Harvey Norman
- Next
- Sainsbury’s/Argos
- Tesco
The Consumer – Key Takeaways
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- Laptop/desktop and smartphone usage narrows for online shopping
- Clothing was by far the most purchased item online
- Data breaches and privacy concerns need to be addressed
COVID-19 and Consumer Behaviours
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- COVID-19 curbs on-the-go shopping
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- Figure 20: Agreement with statements related to online and mobile retailing, NI and RoI, January 2021
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- Figure 21: Consumer agreement with the statement ‘I am shopping more from local businesses’, IoI, March 2020-February 2021
- COVID-19 prompts more confidence with online shopping
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- Figure 22: Agreement with statements related to online and mobile retailing, NI and RoI, January 2021
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- Figure 23: Consumers who are spending more or less time online shopping compared to 12 months ago, NI and RoI, January 2021
Devices Used to Shop Online
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- Laptop/desktop device most popular for at-home purchases
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- Figure 24: Usage of devices to shop online in the last three months, by location, NI and RoI, January 2021
- Younger consumers more likely to use smartphones
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- Figure 25: Consumers who used a smartphone to make a purchase online at home in the last three months, by age, NI and RoI, January 2021
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- Figure 26: Consumers who used a laptop/desktop to make a purchase online at home in the last three months, by age, NI and RoI, January 2021
- Out-of-home online shopping decreases amongst most devices
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- Figure 27: Online purchases made out of home in the last three months, by device, November 2019 vs January 2021
Items Purchased Online
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- Clothing remains the top purchase made online
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- Figure 28: Items/services bought online in the last three months, NI and RoI, January 2021
- Women were more likely to buy clothes online
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- Figure 29: Consumers who have bought clothes online in the last three months, by gender, NI and RoI, January 2021
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- Figure 30: Consumer comfort levels with trying on clothing/footwear in-store, IoI, July-November 2020
- Travel services and entertainment purchases online are down
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- Figure 31: Consumers who have bought entertainment tickets (eg cinema, concerts) and travel services (eg flights, hotels) in the last three months, NI and RoI, November 2019 vs January 2021
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- Figure 32: Activities that consumers are most looking forward to once the current social distancing measures are relaxed, IoI, February 2021
- Takeaway food purchases made online increased in 2020
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- Figure 33: Consumers who have bought takeaway food/home delivery in the last three months, NI and RoI, November 2019 vs January 2021
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- Figure 34: Consumer agreement with the following question ‘Since the COVID-19 outbreak, have your priorities changed for eating healthy?’, IoI, May 2020 and February 2021
Online Delivery Methods
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- Almost nine in 10 consumers using home delivery
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- Figure 35: Types of delivery used by consumers when shopping online in the last three months, NI and RoI, January 2021
- Home deliveries driven by older consumers
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- Figure 36: Consumers who have had a product delivered to their home (eg AddressPal, Amazon Prime) in the last three months, by age, NI and RoI, January 2021
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- Figure 37: Consumers who have bought takeaway food/home delivery in the last three months, NI and RoI, November 2019 vs January 2021
Behaviours towards Online and Mobile Retailing
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- Brexit causes significant concerns
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- Figure 38: Agreement with statements related to online and mobile retailing, NI and RoI, January 2021
- Eight in 10 would delay deliveries for free postage
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- Figure 39: Agreement with the statement ‘Cheaper/free delivery charges make me willing to wait a little longer for deliveries’, by gender, NI and RoI, January 2021
- Environmental concerns see consumers move away from physical goods
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- Figure 40: Agreement with the statement ‘I think it’s more environmentally friendly to opt for digital over physical media’, NI and RoI, January 2021
- Data breaches put off seven in 10 consumers
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- Figure 41: Agreement with the statement ‘I would be less inclined to shop with a company that has experienced a data breach’, by work status, NI and RoI, January 2021
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
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