According to the Ecommerce Delivery Benchmark Report by Auctane and the consultancy Retail Economics, sales values are anticipated to reach £249 billion in 2023, but the 2.6% growth – or an additional £18.2 billion in spending over last year – will be completely driven by higher consumer prices.
More than 730 retail enterprises from eight foreign marketplaces participated in a poll for the study, and the results showed that 80% of retailers aim to raise product prices, with 40% saying that this year’s major problem will be rising expenses.
According to 66 percent of UK consumers surveyed by Retail Economics, inflation is their top worry.
74% of consumers aim to alter their purchasing habits; 34% say they will only make purchases that are absolutely necessary, while 29% say they would postpone or cut back on spending.
Due to consumers needing to spend more money in order to receive less for their money, UK retail sales volumes are predicted to decline by 4.9% compared to last year, with retail inflation forecast to reach 7.5% in the coming year.
More than a quarter of retail companies, according to the poll, intend to raise the price of delivery for their consumers, compared to only 18% who said they wouldn’t do so this year.
For their online orders, nearly 30% of UK consumers stated they would “gladly” move to parcel lockers or click-and-collect services.
“Retailers will continue to face a toxic mix of pressures this year as growing input and operating costs collide against a backdrop of weakening consumer demand, rising interest rates, and changing customer behaviors,” said Richard Lim, chief executive of Retail Economics.
These circumstances “favor those retailers who have strong balance sheets and can invest heavily in pricing, leverage data to target their most valuable customers and win new ones, while efficiently utilizing stores to provide a truly omnichannel proposition. “Those that carry high levels of debt, have weak pricing power, and sit in the middle of the market could find life very difficult.