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BizReport : Mobile Marketing : April 14, 2015

Research: British mobile spend to soar but retailers unprepared

Within the next decade almost £1 in every £7 spent in British stores will be transacted via mobile, according to new research released by Barclays. However, many retailers are not prepared for this change in purchasing behavior.

by Helen Leggatt

By 2024, British consumers will be spending £53.6 billion or more each year via their mobile devices, found research among 1,500 UK consumers and 221 retailers conducted by Conlumino for Barclays. In the past year UK consumers spent £9.7 billion via mobile.

Overall, mobile devices will play a role in 42% of all retail sales by 2024, from researching products, payment and customer service.

However, the 'M-Commerce Survey' also reveals how ill-prepared retailers are in the face of this changing behavior. Less than a third of the retailers surveyed planned mobile investment. Instead, two-thirds (68%) of retailers felt that mobile did not play a role in sales generation and instead simply led to 'showrooming' or customers heading to stores to compare prices and purchase elsewhere.

"Inevitably practices such as 'showrooming' leads to some sales shifting online but, with almost three quarters of consumers using their mobile devices whilst out and about, ignoring this trend would be a missed opportunity. Retailers must cater for the mobile consumer in order to remain relevant," said Richard Lowe, managing director and head of retail and wholesale at Barclays.

About the same number of retailers, 7 in 10, do not currently provide a mobile website or mobile app.

Image via Shutterstock

Tags: marketing, mcommerce, mobile, retail, UK

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