eMarketer: E-commerce is expected to account for one-third of UK holiday shopping spending in 2020

Digital retail will have a huge impact on UK shoppers in the coming holiday season. This year, e-commerce will account for nearly a third of all holiday spending, the largest share yet. Meanwhile, physical shopping remains at risk.

The government closed nonessential retail stores in the UK as part of strict lockdown measures for 12 weeks starting on March 23. British consumers who wanted to buy something other than groceries or medicine were unable to do so in-store.

Even after the lockdown was eased on June 15, the situation on Britain's high streets was far from normal: social distancing measures meant queues were common and foot traffic in stores was limited. Mask-wearing rules were strictly enforced in stores. Most people who were sick were advised to stay home, while many others avoided physical shopping altogether out of an abundance of caution.

These issues and concerns about in-store shopping will continue into the Christmas period, so online shopping will bear the weight of seasonal demand. At the same time, the re-imposition of lockdown into November will further drive this trend. This year, e-commerce holiday season retail sales will reach 28.51 billion pounds (36.38 billion U.S. dollars), an increase of 16.7% on last year, accounting for 32.2% of total UK holiday sales in 2020.

Brick-and-mortar sales are expected to fall 19.0% to £60.04 billion ($76.63 billion) over the same period. In-store sales account for more than two-thirds of total holiday sales, down from three-quarters last year and 81.6% in 2016.

The high street will certainly look very different for consumers who shop out of home during the holiday shopping season this year. According to LDC and PwC UK, a record 11,120 stores closed in the UK in the first half of 2020. Just 3,509 stores closed in the first half of 2019.

On October 12, the UK government adopted a three-tier alert system to curb rising COVID-19 infection rates in specific parts of the country, with restrictions in each area depending on its infection rate and the tier it is in. Although the restrictions will not be as strict as the earlier lockdown, all nonessential retailers will be required to close their doors again.

199IT.com Originally compiled from: eMarketer. Please do not reprint without authorization