E-Commerce still grows but buyers prefer physical shops

Emerging e-commerce markets have grown above trend while ecommerce growth markets in developed countries have returned to trend according to CBRE.

The firm’s research has shown that e-commerce in countries like Spain and Italy has benefitted from a lasting shift to non-physical stores caused by the pandemic as well as the acceleration of technology adoptions and infrastructure improvements.

Between 2019 and 2022, total occupied logistics stock increased by 29% in Spain, a more pronounced growth that any other key European e-commerce market.

Along with Italy and Spain, the top six e-commerce markets in Europe include the mature markets of the UK, France, Germany and the Netherlands, accounting for 72% of e-commerce spend. The UK and Germany alone account for almost half of that figure.

However, according to CBRE, consumers still prefer bricks-and-mortar shops. An average of 60% of consumers across European countries prefer in-person shopping to online.

The report also found that the take-up of warehouse space from physical and omnichannel retailers has recovered to pre-pandemic levels.

Head of European retail at CBRE Chris Gardener said: “Physical retail has huge significance, well beyond simply being a place to shop and acts as a catalyst for ecommerce growth. For retailers, a strong omnichannel offering will be critical in achieving equilibrium across their online and offline channels, as retail continues to evolve.”