Online spend to hit €21bn by 2017

Irish consumers are expected to be spending as much as €21bn on online purchases by 2017, with new estimates predicting a 40% annual increase in web-based transactions over the coming years as consumer habits change further.

Figures compiled by the Digital Hub Development Agency for the latest annual online retailing survey from industry representative body, Retail Ireland, suggests that the web-based retail market is currently worth €4.1bn, here, but is growing considerably every year.

The wider survey notes that as many as 84% of Irish retailers have a web presence, with 64% of them planning to upgrade that in the next year and a half.

Speaking after Retail Ireland’s annual conference in the Aviva Stadium, yesterday, the Ibec-affiliated body’s director, Stephen Lynam said that the positive web/retailer integration readings are proof that Irish retailers don’t have their heads in the sand and are prepared for changing consumer trends. He added that while not every consumer will switch to online shopping, a “significant shift” is under way.

“Irish retailers are now sharply focused on catering to the digital consumer as well as the traditional customer. It’s a huge market, estimated at a value of €4.1bn in Ireland alone, and the retailers surveyed reported that 15% of their sales now come from online sales.

“There is huge scopeto increase online sales. The majority of retailers surveyed are offering discounts, special deals, free shipping and larger product ranges to attract online shoppers,” he said.

However, Mr Lynam also warned that more could be done — at government level — to aid retailers; noting that delivery costs, initial set-up costs, a lack of post codes and poor broadband speeds are still acting as barriers to online trading.

“While many retailers are addressing these barriers themselves, Government support is needed to address issues such as the provision of high speed broadband, through the accelerated implementation of the National Broadband Plan, and speed up plans to introduce a comprehensive post code system in Ireland to help with deliveries,” he said.

“Given that the sector is under huge pressure, it needs every support possible to help it overcome the very challenging market conditions,” Mr Lynam added.