GlobalData a leading data and analytics company has claimed Amazon to be the fifth biggest player in UK retail, as its retail revenue continues to rise at a rapid pace. The online giant accounted for over 4 in every 100 spent on retail in 2017.
The online pureplay continues to outstrip growth in the UK online channel with retail revenue estimated to have risen by 22.5% in 2017, in comparison to total online spend rising 8.4%. The company is not only stealing share from its UK competitors but is forecast to have accounted for 33.5% of all UK spend online in 2017 versus 29.6% in 2016.
Sofie Willmott, Senior Retail Analyst at GlobalData commented, “Amazon is soaring up the ranks of UK retail with the online behemoth only held off the top spot by the big four grocers in 2017. Its dominance in the retail market considering it primarily sells non-essential items in comparison to the grocers who benefit from selling indispensable, everyday goods, and that it does not have any physical stores in the UK, is evidence of how Amazon has continually innovated and succeeded in meeting consumer needs, in terms of both product range and shopping experience.’’
Given Amazon’s phenomenal performance and the limited growth forecast in retail spend over the next five years, it is no surprise that retailers are eager to get on board and ramp up their online sales in an attempt to drive incremental sales via a new sales channel.
Willmott adds, ‘‘It is imperative that retailers continue to give shoppers a reason to visit and purchase from their own sites, such as exclusive products or loyalty rewards, to maximise profits and consolidate their place in the market.’’