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According to a new report independently commissioned by Barclays’ Retail and Transport & Logistics banking sector teams, the UK is set for a surge in online shopping which is set to generate over 1.35 billion deliveries a year by 2018.

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The online purchasing and delivery market is growing, and with order numbers increasing rapidly, the use of tablet and mobile devices is driving round the clock purchasing habits.

Consequently, retailers are under pressure to both manage their stock, and provide efficient delivery in terms of speed, price, service and quality.

In an increasingly competitive delivery market, this report explores the relationship between consumers, retailers and logistics providers, as well as their predictions for the future.

With the online sales momentum set to grow, retailers who reassess their online strategy and boost investment in the online fulfilment process will benefit.
Richard Lowe, Head of Retail & Wholesale, Barclays

Key findings

  • Demand for buying clothing and footwear over the internet is set to continue, making up 20% of all deliveries over the next four years – the highest of any product sector 
  • By 2018, online food deliveries will overtake the number of book deliveries to become the online retail sector with the third highest volume of deliveries 
  • Digital music and film downloads are expected to decline by 39% over the coming years as subscription-based services increase in popularity 
  • Nearly 30% of retailers would use Click & Collect as their preferred delivery option although less than 20% of consumers have used this service in the past year 

Barclays has been supporting the Retail and Wholesale sector for many years. In 1999, we became the first UK bank to introduce industry sector specialist teams, enabling us to take that support further, building on our knowledge and expertise. This depth of experience gives us the insight to develop innovative products and services for the challenges and opportunities that the industry presents, and to provide specialist support to a wide range of both retail and wholesale businesses

The Last Mile Report - Exploring the online purchasing and delivery journey (PDF 2.5MB) Click below to access the report (new window)
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