Step change in UK consumers’ online spending habits: Colliers

Government figures have revealed that the online portion of retail sales in the UK hit 25.5% for two consecutive months this summer which Colliers said marks a step change in consumer behaviour.

The figures for June and July could signal “a new norm in spending habits for the retail market,” the firm said.

 “During the various lockdowns, online sales’ share of total retail sales reached monthly peaks of 37%,” said head of industrial and logistics research Andrea Ferranti.

“Following the re-opening of the high street, this figure understandably contracted. However, there seems to have been a clear step change in consumer behaviours with monthly online spending levelling out at 25.5% for two consecutive months,” he added.

“This is a reliable signpost that we may have found a new status quo for online consumer spending habits post-lockdown.”

During an industrial and logistics panel debate attended by more than 300 industry professionalsthe firm polled the audience to ask if they thought the latest data from the Office for National Statistics signalled a new norm for the market, and 73% agreed that it did.

The firm said that its analysis shows a clear correlation between the strength of online sales and occupier demand for industrial logistics space.

In Q3 2021 take-up was almost 12 million sq ft (1.1 million sq m) bringing year-to-date take-up to 34.2 million sq ft (3.2 million sq m) for units over 100,000 sq ft, only 10% below the record levels seen in 2020.

Current supply, including speculative space, at the end of Q3 2021 stands at circa 20 million sq ft – the lowest ever seen in the sector. By the end of 2021, more than 11 million sq ft of speculative space will have been delivered, however, Colliers’ data shows that circa 7 million sq ft of this has either been let or is under offer, and the firm believes supply will remain suppressed for the next 12 months.