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Online Retailing - UK - July 2019

Covered in this report

This report is designed to give an overview of the UK online retail market. We look at all online sales, both from store-based retailers and those that only trade online. We include an overview of the market, including forecasts for the way the market will develop, in-depth consumer analysis using our own data, and a look at the key players in the market through company profiles. For our consumer research this year we asked questions on the following topics:

  • Who is shopping online and which consumers shop most frequently online?
  • What products do they buy online?
  • Which devices are they making purchases on and how do they prefer to shop via mobile?
  • What do consumers do before making a purchase online?
  • What retailers do they shop with online?
  • Are they a member of a subscription delivery service, and if so which ones?
  • How many consumers shopped via credit in the past year, and which type of service did they use?
  • How widespread is the use of cashback sites, and which do they use?
  • What are consumers attitudes to returns, try-before-you-buy and the discovery process?

“The online market continues to grow strongly and gain its share of the wider retail market in the UK. Its rise is not necessarily the ‘high-street killer’ it is portrayed to be, but its growth is changing retail both on and off line. Particularly key is the continued growth in mobile commerce with smartphones both the perfect tool to disrupt store-based operations but equally for multi-channel players the tool to better unite both sides of a retailer’s business.”
Nick Carroll, Associate Director of Retail Research

This Report will cover the following areas:

  • Does the UK need an online sales tax?
  • The impact of the mobile-first generation
  • The opportunities for online within an aging population

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Table of contents

  1. Overview

    • What you need to know
      • Areas covered in this Report
      • Executive Summary

          • The market
            • Retail sales holding up despite uncertainty in the market
              • Figure 1: Mintel Financial Confidence Tracker, January 2017-May 2019
            • The online market grows by 14.4% in 2018…
              • Figure 2: All online sales and forecast, 2014-24
            • ...meaning online claimed 18.0% of all retail sales
              • Figure 3: Online sales as a % of all retail sales (including VAT), 2014-24
            • Store-based retailers account for just under half of all online sales
              • Figure 4: Online pure players and store-based retailers share of all online sales, 2008-19
            • Companies and brands
              • Amazon the dominant market leader…
                • Figure 5: Leading retailers share of all online sales, 2018
              • …and its brand is strong
                • Figure 6: Key metrics for selected brands, September 2018-June 2019
              • Larger players look to support the high-street
                • Figure 7: Amazon Clicks and Mortar Manchester, June 2019
              • The consumer
                • Vast majority of consumers shop online
                  • Figure 8: Frequency of online shopping, May 2019
                • Fashion and hard-copy media popular categories
                  • Figure 9: Products purchased online in the past year, May 2019
                • Smartphone purchasing now more popular among 16-34s
                  • Figure 10: Devices used to shop online, 2017-19
                • Comparing prices and delivery options key in the pre-purchase journey
                  • Figure 11: What consumers do before shopping online, May 2019
                • Amazon most popular retailer online
                  • Figure 12: Retailers shopped with online in the last 12 months, May 2019
                • 29% have a delivery pass that isn’t Amazon Prime
                  • Figure 13: Retail delivery service membership, May 2019
                • 29% have used PayPal Credit while 37% have used a cashback site in the past year
                  • Figure 14: Use of credit when shopping with retailers in the past year, May 2019
                • 69% think limiting the ability to return items would make online shopping less appealing
                  • Figure 15: Attitudes towards shopping online, may 2019
                • What we think
                • Issues and Insights

                  • Does the UK need an online sales tax?
                    • The facts
                      • The implications
                        • The impact of the mobile-first generation
                          • The facts
                            • The implications
                              • The opportunities for online within an aging population
                                • The facts
                                  • The implications
                                  • The Market – What You Need to Know

                                    • Retail sales holding up despite uncertainty in the market
                                      • Online market grows by 14.4% in 2018
                                        • Store-based retailers account for just under half of all online sales
                                          • Digital download market worth some £3.6 billion in 2018
                                          • Market Drivers

                                            • 95% of UK households now online
                                              • Figure 16: UK household internet access, 2011-18
                                            • Smartphone ownership hits its highest level to date in 2018
                                              • Figure 17: Ownership of mobile phones, January 2012-January 2019
                                            • Wage growth outstripping inflation
                                              • Figure 18: Real wage growth: average weekly earnings vs inflation, January 2016-May 2019
                                            • A new high for Mintel’s financial confidence index
                                              • Figure 19: Mintel Financial Confidence Tracker, January 2015-May 2019
                                            • Discounting boosts retail sales volume growth year-on-year in 2018, but hits value growth
                                              • Figure 20: Annual % change in all UK retail sales (excluding fuel), by value and volume, June 2016-Jun 2019
                                          • Market Size and Forecast

                                            • Online market grows by 14.4% in 2018
                                              • Figure 21: All online sales and forecast, 2014-24
                                              • Figure 22: All online sales and forecast, at current and constant prices, 2014-24
                                            • Online to account for almost a fifth of all retail in 2019
                                                • Figure 23: Online sales as a % of all retail sales (including VAT), 2014-24
                                              • Online’s share peaks in November in line with Black Friday
                                                • Figure 24: Online retail sales as a % of all retail sales, non-seasonally adjusted, January 2016-April 2019
                                                • Figure 25: Average weekly value of all online retail sales, non-seasonally adjusted, January 2016-April 2019
                                              • Forecast methodology
                                              • Market Segmentation

                                                  • Breakdown of retail sales by type of retailer
                                                    • Figure 26: Online sales by type of retailer, 2018
                                                    • Figure 27: Online sales by type of retailer, 2014-18
                                                  • Store-based vs online-only retailers
                                                    • Figure 28: Online pure players and store-based retailers share of all online sales, 2010-19
                                                  • The longer term view
                                                    • Figure 29: Total online-only retailer sales, 2014-24
                                                    • Figure 30: Total online-only retailer sales, at current and constant prices, 2014-24
                                                    • Figure 31: Total store-based retailers sales, 2014-24
                                                    • Figure 32: Total store-based retailers sales, at current and constant prices, 2014-24
                                                  • Sales by product
                                                    • Figure 33: Online estimated sales by product, 2018
                                                    • Figure 34: Online retailing: estimated sales by product by store-based and online-only retailers, 2018
                                                • Digital Spending

                                                    • Books – Hard copy fighting back
                                                      • Figure 35: Value of consumer print book and publisher UK sales of consumer digital books (net invoiced value), 2014-19
                                                    • Music – Streaming taking over
                                                      • Figure 36: Spending on recorded music 2014-18
                                                    • Video – Streaming now over half of the market
                                                      • Figure 37: The video market, 2016-18
                                                    • Games
                                                      • The total download market
                                                        • Figure 38: Estimated digital download market, 2018
                                                    • The Consumer – What You Need to Know

                                                      • Vast majority of consumers shop online
                                                        • Fashion and hard-copy media popular categories
                                                          • Smartphone purchasing now more popular among 16-34s
                                                            • Comparing prices and delivery options key in the pre-purchase journey
                                                              • Amazon most popular retailer online
                                                                • 29% have a delivery pass that isn’t Amazon Prime
                                                                  • 29% have used PayPal Credit while 37% have used a cashback site in the past year
                                                                    • 69% think limiting the ability to return items would make online shopping less appealing
                                                                    • Who Shops Online and How Frequently They Shop

                                                                      • Online shopping ubiquitous across all demographics
                                                                        • Figure 39: Usage of online retailing, by age and gender, May 2019
                                                                      • Over a third (36%) shop online weekly
                                                                          • Figure 40: Frequency of online shopping, May 2019
                                                                        • 25-34s most frequent online shoppers
                                                                          • Figure 41: Frequency of online shopping, by age, May 2019
                                                                      • Products Purchased Online

                                                                        • Fashion most popular online purchase
                                                                            • Figure 42: Products purchased online in the past year, May 2019
                                                                          • Products purchased by age
                                                                            • Figure 43: Products purchased online in the past year, by age, May 2019
                                                                          • 35-44s have the broadest repertoire online
                                                                            • Figure 44: Repertoire of product categories purchased from online in the past year, by age, May 2019
                                                                          • There is still some hesitancy around buying certain categories online
                                                                          • Devices Used to Purchase Online

                                                                            • Desktop/laptop purchasing still most common but smartphone shopping growing rapidly
                                                                              • Figure 45: Devices used to shop online, 2017-19
                                                                            • Younger consumers now more likely to shop via smartphone
                                                                              • Figure 46: Devices used to shop online, by age, May 2019
                                                                            • More purchase via mobile site than app
                                                                              • Figure 47: How smartphone/tablet shoppers shop online, May 2019
                                                                            • Younger consumers want more features from apps
                                                                                • Figure 48: Attitudes to retail mobile apps, May 2019
                                                                            • The Pre-Purchase Journey

                                                                              • Price and convenience are key in the decision process
                                                                                • Figure 49: What consumers do before shopping online, May 2019
                                                                              • Younger consumers more driven by promotional activity
                                                                                • Figure 50: What consumers do before shopping online, by age, May 2019
                                                                              • Straight to search
                                                                                  • Figure 51: Attitudes towards search, May 2019
                                                                              • Retailers Used

                                                                                • More shop with online-only retailers
                                                                                  • Figure 52: Types of online retailer shopped with in the past 12 months, May 2019
                                                                                • Amazon and eBay dominant
                                                                                    • Figure 53: Store-based and online-only retailers shopped with in the past year, May 2019
                                                                                  • Argos most popular store-based player online
                                                                                    • Figure 54: Retailers shopped with online in the last 12 months, May 2019
                                                                                  • Online customer profiles
                                                                                      • Figure 55: Retailers shopped with online in the last 12 months, by age and socio-economic group, May 2019
                                                                                    • Consumers have a wider repertoire of store-based retailers they shop with
                                                                                      • Figure 56: Repertoire of online-only and store-based retailers shopped with in the past year, May 2019
                                                                                  • Subscription Delivery Services and Returns

                                                                                    • Away from Prime, grocery delivery passes most popular retail memberships
                                                                                      • Figure 57: Retail delivery service membership, May 2019
                                                                                    • Fast fashion retailers show highest penetration among their shopping base
                                                                                        • Figure 58: Retail delivery service membership, by retailer shopper base, May 2019
                                                                                      • The issue of returns
                                                                                          • Figure 59: Attitudes to returns, May 2019
                                                                                      • Credit and Cashback

                                                                                        • 65% purchased on credit in the past year
                                                                                            • Figure 60: Use of credit when shopping with retailers in the past year, May 2019
                                                                                          • Younger consumers more likely to use newer options
                                                                                            • Figure 61: Use of credit when shopping with retailers in the past year, May 2019
                                                                                          • 43% say credit options encourage impulse purchasing
                                                                                            • Figure 62: Attitudes to credit options, by age, May 2019
                                                                                          • Over a third use cashback sites
                                                                                            • Figure 63: Use of cashback sites in the past year, May 2019
                                                                                          • Over half of 25-34s have used a cashback site in the past year
                                                                                            • Figure 64: Use of cashback sites in the past year, by age, May 2019
                                                                                        • Key Players – What You Need to Know

                                                                                          • Amazon the dominant player
                                                                                            • Four retailers account for 45% of the market
                                                                                              • Boots the most trusted brand online
                                                                                                • Visual search and AR use on the rise
                                                                                                • Leading Online Retailers

                                                                                                    • Amazon the leading player
                                                                                                      • Figure 65: UK: top 30 leading online retailers, 2016/17-2018/19
                                                                                                  • Market Share

                                                                                                    • Amazon the dominant market leader
                                                                                                      • Figure 66: Leading retailers share of all online sales, 2018
                                                                                                      • Figure 67: Leading retailers: share of all online sales, 2016-18
                                                                                                  • Brand Research

                                                                                                      • What you need to know
                                                                                                        • Brand map
                                                                                                          • Figure 68: Attitudes towards and usage of selected brands, September 2018-June 2019
                                                                                                        • Key brand metrics
                                                                                                          • Figure 69: Key metrics for selected brands, September 2018-June 2019
                                                                                                        • Brand attitudes: Innovative ASOS, trustworthy Boots
                                                                                                          • Figure 70: Attitudes, by brand, September 2018-June 2019
                                                                                                        • Brand personality: ASOS and eBay fun brands
                                                                                                          • Figure 71: Brand personality – macro image, September 2018-June 2019
                                                                                                        • Headline: Amazon responsive and reliable, John Lewis and Ocado perceived as more expensive
                                                                                                          • Figure 72: Brand personality – micro image, September 2018-June 2019
                                                                                                        • Brand analysis
                                                                                                          • Amazon near-universal brand awareness and highest lifetime usage
                                                                                                            • ao.com offers a reasonably good online service, but not particularly good value for money
                                                                                                              • Argos high brand awareness and accessible, but lacks cutting edge and style
                                                                                                                • John Lewis pricey, but worth paying more for
                                                                                                                  • ASOS innovative and fun
                                                                                                                    • Boots trustworthy, accessible and reliable
                                                                                                                      • Ocado low usage and untrustworthy
                                                                                                                        • eBay innovative, good online service, value for money and highly recommended
                                                                                                                          • JD Williams functional and basic, rather than innovative or cutting edge
                                                                                                                            • Boohoo/Boohoo Man low brand awareness and low lifetime usage
                                                                                                                              • Littlewoods high brand awareness but least recommended
                                                                                                                                • Very accessible and somewhat aspirational
                                                                                                                                • Launch Activity and Innovation

                                                                                                                                  • eBay opens high-street concept store
                                                                                                                                    • Expanded online delivery options
                                                                                                                                      • Augmented reality technology to give shoppers more certainty when purchasing items online
                                                                                                                                        • Image-based shopping
                                                                                                                                          • Voice-activated beauty shopping
                                                                                                                                            • Amazon launches private label skincare brand
                                                                                                                                              • ‘Try before you buy’ fashion service
                                                                                                                                                • New parcel postboxes scheme rolled out to make online retail easier
                                                                                                                                                  • Geo-targeted delivery-on-demand
                                                                                                                                                  • Advertising and Marketing Activity

                                                                                                                                                    • Online retail advertising spend up 20.9% year-on-year in 2018
                                                                                                                                                      • Figure 73: UK online retail: recorded above-the-line, online display and direct mail total advertising expenditure, 2015-18
                                                                                                                                                    • Amazon’s first real brand advertising campaign for Prime Video
                                                                                                                                                      • eBay highlights hot deals and trending items
                                                                                                                                                        • Moonpig’s #MerrierTogether Christmas campaign
                                                                                                                                                          • JD Williams first advertising since recruiting TBWA\Manchester
                                                                                                                                                            • Shop Direct Very’s location-based digital out of home campaign
                                                                                                                                                              • Figure 74: Leading UK online retailers: recorded above-the-line, online display and direct mail total advertising expenditure, 2015-18
                                                                                                                                                            • Digital share grows, TV falls
                                                                                                                                                              • Figure 75: UK online retail: recorded above-the-line, online display and direct mail total advertising expenditure, by media type, 2015-18
                                                                                                                                                            • Nielsen Ad Intel coverage
                                                                                                                                                            • AliExpress

                                                                                                                                                                • What we think
                                                                                                                                                                  • As a retailer
                                                                                                                                                                    • Where next?
                                                                                                                                                                      • Company background
                                                                                                                                                                        • Company performance
                                                                                                                                                                          • Figure 76: Alibaba: sales by division, 2017-18
                                                                                                                                                                          • Figure 77: Alibaba: group financial performance, 2015/16-2018/19
                                                                                                                                                                        • Gross merchandise volume (GMV, or total sales at retail prices)
                                                                                                                                                                          • Figure 78: Alibaba: GMV of China marketplaces, 2015/16-2017/18
                                                                                                                                                                        • AliExpress
                                                                                                                                                                          • Retail offering
                                                                                                                                                                          • Amazon

                                                                                                                                                                              • What we think
                                                                                                                                                                                • Amazon: A Shopper’s Perspective – UK, January 2019
                                                                                                                                                                                  • Amazon in Europe
                                                                                                                                                                                    • How has it done it?
                                                                                                                                                                                      • Marketplace development
                                                                                                                                                                                        • Amazon Prime
                                                                                                                                                                                          • Dynamism
                                                                                                                                                                                            • Stores and online
                                                                                                                                                                                              • Food retailing
                                                                                                                                                                                                • Where next?
                                                                                                                                                                                                  • Company background
                                                                                                                                                                                                    • Company performance
                                                                                                                                                                                                      • Figure 79: Amazon: consolidated sales by activity, 2018
                                                                                                                                                                                                    • Mintel estimates
                                                                                                                                                                                                      • GTV vs consolidated sales
                                                                                                                                                                                                        • Recent performance
                                                                                                                                                                                                          • Figure 80: Amazon Group: group financial performance, 2014-18
                                                                                                                                                                                                          • Figure 81: Amazon International: estimated retail sales performance, 2015-18
                                                                                                                                                                                                        • Retail offering
                                                                                                                                                                                                          • Consumer profile
                                                                                                                                                                                                            • Product mix
                                                                                                                                                                                                              • Figure 82: Amazon UK: estimated sales by product, 2017
                                                                                                                                                                                                            • Marketing
                                                                                                                                                                                                            • AO World

                                                                                                                                                                                                                • What we think
                                                                                                                                                                                                                  • AR presents products in the home
                                                                                                                                                                                                                    • Rentals service aimed at cash-strapped consumers
                                                                                                                                                                                                                      • Mulling subscription fee initiative
                                                                                                                                                                                                                        • Scaling up existing proposition with complementary services
                                                                                                                                                                                                                          • New dedicated business website
                                                                                                                                                                                                                            • Leveraging logistics expertise to offer third-party deliveries
                                                                                                                                                                                                                              • Last-mile solution to support planned product expansion
                                                                                                                                                                                                                                • Collaborating with digital start-ups to make online shopping faster and easier
                                                                                                                                                                                                                                  • Company background
                                                                                                                                                                                                                                    • Company performance
                                                                                                                                                                                                                                      • Figure 83: AO World Plc: group financial performance, 2014/15-2018/19
                                                                                                                                                                                                                                    • Retail offering
                                                                                                                                                                                                                                    • Argos

                                                                                                                                                                                                                                        • What we think
                                                                                                                                                                                                                                          • Using voice recognition technology as part of the online ordering process
                                                                                                                                                                                                                                            • ‘See before you buy’ augmented reality tool
                                                                                                                                                                                                                                              • Beefed up fulfilment capabilities
                                                                                                                                                                                                                                                • Accelerated technology-led ‘digital store’ concept
                                                                                                                                                                                                                                                  • Company background
                                                                                                                                                                                                                                                    • Company performance
                                                                                                                                                                                                                                                      • Figure 84: Argos: group financial performance, 2014/15-2018/19
                                                                                                                                                                                                                                                      • Figure 85: Argos: outlet data, 2014/15-2018/19
                                                                                                                                                                                                                                                    • Retail offering
                                                                                                                                                                                                                                                    • ASOS

                                                                                                                                                                                                                                                        • What we think
                                                                                                                                                                                                                                                          • Getting tough on ‘serial returners’
                                                                                                                                                                                                                                                            • Bolstering CSR credentials with charity shop initiative
                                                                                                                                                                                                                                                              • Making shopping online for clothing easier
                                                                                                                                                                                                                                                                • Tailored experience for specific markets
                                                                                                                                                                                                                                                                  • Becomes the latest fashion retailer to introduce its own homewares collection
                                                                                                                                                                                                                                                                    • Company background
                                                                                                                                                                                                                                                                      • Company performance
                                                                                                                                                                                                                                                                          • Figure 86: ASOS: group financial performance, 2013/14-2017/18
                                                                                                                                                                                                                                                                        • Retail offering
                                                                                                                                                                                                                                                                        • Boohoo Group

                                                                                                                                                                                                                                                                            • What we think
                                                                                                                                                                                                                                                                              • Acquisitions transform Boohoo into a multi-brand online fashion destination
                                                                                                                                                                                                                                                                                • Refreshed website design to aid customers through the decision-making process
                                                                                                                                                                                                                                                                                  • Fulfilment refinements to enhance convenience
                                                                                                                                                                                                                                                                                    • Celebrity collaborations and influencer network
                                                                                                                                                                                                                                                                                      • Tackling fast fashion waste
                                                                                                                                                                                                                                                                                        • Company background
                                                                                                                                                                                                                                                                                          • Company performance
                                                                                                                                                                                                                                                                                            • Figure 87: Boohoo Group plc: group financial performance, 2014/15-2018/19
                                                                                                                                                                                                                                                                                          • Retail offering
                                                                                                                                                                                                                                                                                          • eBay

                                                                                                                                                                                                                                                                                              • What we think
                                                                                                                                                                                                                                                                                                • Marketplace
                                                                                                                                                                                                                                                                                                  • What eBay adds
                                                                                                                                                                                                                                                                                                    • Is eBay mature?
                                                                                                                                                                                                                                                                                                      • Where next?
                                                                                                                                                                                                                                                                                                        • Company background
                                                                                                                                                                                                                                                                                                          • Company performance
                                                                                                                                                                                                                                                                                                            • Figure 88: eBay: group financial performance, 2014-18
                                                                                                                                                                                                                                                                                                            • Figure 89: eBay: Group revenue by stream, 2018
                                                                                                                                                                                                                                                                                                            • Figure 90: eBay: group Gross Merchandise Volume, 2014-18
                                                                                                                                                                                                                                                                                                          • Retail offering
                                                                                                                                                                                                                                                                                                          • Missguided

                                                                                                                                                                                                                                                                                                              • What we think
                                                                                                                                                                                                                                                                                                                • Enhanced payment option with new ‘buy now, pay later’ service
                                                                                                                                                                                                                                                                                                                  • Online to offline with mixed success
                                                                                                                                                                                                                                                                                                                    • Meeting the demand for ‘see now, buy now’
                                                                                                                                                                                                                                                                                                                      • Reimagining the fashion mcommerce experience with Tinder-inspired app
                                                                                                                                                                                                                                                                                                                        • Influencer marketing and celebrity tie-ups amplify the brand’s reach and engagement
                                                                                                                                                                                                                                                                                                                          • Needs to do more to promote sustainable fashion
                                                                                                                                                                                                                                                                                                                            • Targeting the Middle East’s youthful demographic
                                                                                                                                                                                                                                                                                                                              • Company background
                                                                                                                                                                                                                                                                                                                                • Company performance
                                                                                                                                                                                                                                                                                                                                  • Figure 91: Missguided: group financial performance, 2013/14-2017/18
                                                                                                                                                                                                                                                                                                                                • Retail offering
                                                                                                                                                                                                                                                                                                                                • N Brown Group

                                                                                                                                                                                                                                                                                                                                    • What we think
                                                                                                                                                                                                                                                                                                                                      • Management
                                                                                                                                                                                                                                                                                                                                        • Where next?
                                                                                                                                                                                                                                                                                                                                          • Company background
                                                                                                                                                                                                                                                                                                                                            • Company performance
                                                                                                                                                                                                                                                                                                                                                • Figure 92: N Brown Group Plc: group financial performance, 2013/14-2018/19
                                                                                                                                                                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                                                                                                                                                                                • Figure 93: N Brown: sales by product, 2017/18 and 2018/19
                                                                                                                                                                                                                                                                                                                                            • Next Group

                                                                                                                                                                                                                                                                                                                                                • What we think
                                                                                                                                                                                                                                                                                                                                                  • Repurposing loss-making stores into collection shops
                                                                                                                                                                                                                                                                                                                                                    • Speedy click-and-collect order fulfilment
                                                                                                                                                                                                                                                                                                                                                      • Positioning itself as a one-stop shop for online fashion and homewares
                                                                                                                                                                                                                                                                                                                                                        • Website developments aimed at enhancing online user experience
                                                                                                                                                                                                                                                                                                                                                          • Company background
                                                                                                                                                                                                                                                                                                                                                            • Company performance
                                                                                                                                                                                                                                                                                                                                                              • Figure 94: Next Group: group financial performance, 2014/15-2018/19
                                                                                                                                                                                                                                                                                                                                                              • Figure 95: Next Group: outlet data, 2014/15-2018/19
                                                                                                                                                                                                                                                                                                                                                              • Figure 96: Next Group: average active customers, 2017/18 and 2018/19
                                                                                                                                                                                                                                                                                                                                                            • Retail offering
                                                                                                                                                                                                                                                                                                                                                            • Ocado Group

                                                                                                                                                                                                                                                                                                                                                                • What we think
                                                                                                                                                                                                                                                                                                                                                                  • February 2019 – bad news, good news
                                                                                                                                                                                                                                                                                                                                                                    • Where next?
                                                                                                                                                                                                                                                                                                                                                                      • Company background
                                                                                                                                                                                                                                                                                                                                                                        • Company performance
                                                                                                                                                                                                                                                                                                                                                                          • Figure 97: Ocado Group plc: Group financial performance, 2012/13-2017/18
                                                                                                                                                                                                                                                                                                                                                                        • Retail offering
                                                                                                                                                                                                                                                                                                                                                                        • Otto Group (Multichannel Retail)

                                                                                                                                                                                                                                                                                                                                                                            • What we think
                                                                                                                                                                                                                                                                                                                                                                              • Time-saving and convenient automated shopping experiences
                                                                                                                                                                                                                                                                                                                                                                                • Faster delivery with new instant payment system
                                                                                                                                                                                                                                                                                                                                                                                  • Experimental store concept combining the advantages of bricks-and-mortar retailing with those of online shopping
                                                                                                                                                                                                                                                                                                                                                                                    • Raising awareness of sustainability and eco-friendly credentials
                                                                                                                                                                                                                                                                                                                                                                                      • Company background
                                                                                                                                                                                                                                                                                                                                                                                        • Company performance
                                                                                                                                                                                                                                                                                                                                                                                          • Figure 98: Otto Group (Multichannel Retail): group sales performance, 2014/15-2018/19
                                                                                                                                                                                                                                                                                                                                                                                          • Figure 99: Otto Group: major brands within the Multichannel Retail segment, 2018/19
                                                                                                                                                                                                                                                                                                                                                                                        • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                        • Shop Direct Group

                                                                                                                                                                                                                                                                                                                                                                                            • What we think
                                                                                                                                                                                                                                                                                                                                                                                              • Cost cutting
                                                                                                                                                                                                                                                                                                                                                                                                • Mail order into online
                                                                                                                                                                                                                                                                                                                                                                                                  • Where next?
                                                                                                                                                                                                                                                                                                                                                                                                    • Company background
                                                                                                                                                                                                                                                                                                                                                                                                      • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 100: Shop Direct Group: group financial performance, 2013/14-2018/19
                                                                                                                                                                                                                                                                                                                                                                                                      • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 101: Shop Direct: group product mix, 2017/18
                                                                                                                                                                                                                                                                                                                                                                                                    • YNAP group

                                                                                                                                                                                                                                                                                                                                                                                                        • What we think
                                                                                                                                                                                                                                                                                                                                                                                                          • YNAP gives a much-needed boost to Richemont’s online presence
                                                                                                                                                                                                                                                                                                                                                                                                            • Increased co-operation with other brands in the Richemont family
                                                                                                                                                                                                                                                                                                                                                                                                              • Alibaba deal provides China boost
                                                                                                                                                                                                                                                                                                                                                                                                                • Customer service enhancements focus on personalisation
                                                                                                                                                                                                                                                                                                                                                                                                                  • Where now?
                                                                                                                                                                                                                                                                                                                                                                                                                    • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                      • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                        • Figure 102: YNAP group: group financial performance, 2013/14-2018/19
                                                                                                                                                                                                                                                                                                                                                                                                                      • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                      • Zalando

                                                                                                                                                                                                                                                                                                                                                                                                                          • What we think
                                                                                                                                                                                                                                                                                                                                                                                                                            • Direct delivery of goods through partnered stores
                                                                                                                                                                                                                                                                                                                                                                                                                              • Expansion of loyalty scheme to strengthen relationship with customers
                                                                                                                                                                                                                                                                                                                                                                                                                                • Virtual stylist to aid customers through the decision making process
                                                                                                                                                                                                                                                                                                                                                                                                                                  • Charging delivery fees to offset falling average order size and higher fulfilment costs
                                                                                                                                                                                                                                                                                                                                                                                                                                    • Combatting ‘wardrobing’
                                                                                                                                                                                                                                                                                                                                                                                                                                      • Eyeing growth through beauty
                                                                                                                                                                                                                                                                                                                                                                                                                                        • In-home delivery service
                                                                                                                                                                                                                                                                                                                                                                                                                                          • Tackling the problem of packaging waste
                                                                                                                                                                                                                                                                                                                                                                                                                                            • Company background
                                                                                                                                                                                                                                                                                                                                                                                                                                              • Company performance
                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 103: Zalando: group financial performance, 2014-18
                                                                                                                                                                                                                                                                                                                                                                                                                                                • Figure 104: Zalando: key metrics, 2015-Q1 2018
                                                                                                                                                                                                                                                                                                                                                                                                                                              • Retail offering
                                                                                                                                                                                                                                                                                                                                                                                                                                              • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                                                                                                                                                                                                                                                                                                • Data sources
                                                                                                                                                                                                                                                                                                                                                                                                                                                  • VAT
                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Financial definitions
                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Abbreviations
                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Consumer research methodology
                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Appendix – Market Size and Forecast

                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Forecast methodology

                                                                                                                                                                                                                                                                                                                                                                                                                                                          Online Retailing - UK - July 2019

                                                                                                                                                                                                                                                                                                                                                                                                                                                          £1,995.00 (Excl.Tax)