Online Physical Goods Sales Will Account For 13% of Retail Market by 2020

A new study from Juniper Research has found that online physical goods sales will account for 13% of global retail by 2020, or $3.8 trillion out of a global retail market of nearly $30 trillion. The study found that traditional ‘bricks and mortar’ retailers are seeking to buttress their ailing offline-store activities with the development of integrated online engagement channels.

According to research author Windsor Holden, “Some retailers, particularly those with a strong dependency on grocery, believe that moving spend to online was counterproductive, given the high levels of marginal costs and the perception of reduced customer loyalty. However, development of a successful, integrated omnichannel offering can ultimately enhance loyalty levels and increase consumer-spend levels.“

The research pointed out that Wal-Mart, with annual sales of around $480 billion across all its channels, but overwhelmingly instore, has demonstrated its commitment to facilitating an integrated experience. The retailer has recently announced the creation of an ‘innovation hub’, Store No 8, to focus on technologies that can drive retail opportunities in future, including robots, virtual/augmented reality and AI.