Mobile shopping set to hit 53 billion pounds a year

Consumers are set to spend 53.6 billion pounds a year using their smartphones and tablets by 2024, compared with the 9.7 billion pounds spent today, according to new research by Barclays.

The research reveals that the influence of mobile on spending is expected to more than double the direct mobile transaction figures from 18.4 billion pounds in 2014 to 112 billion pounds respectively by 2024. This means that nearly half, 42 percent, of all retail sales will involve a mobile device in some way or another, making mobile the fastest growing retail segment.

However, Barclay’s research also notes that only 3 percent of retailers believe that their business is at the ‘cutting edge’ when it comes to being mobile ready, with a further 70 percent stating that they did not currently offer a mobile website or a mobile app for consumers.

When asked about future strategies, less than a third of retailers said they had a clear plan of action regarding future investment in mobile with 68 percent conceding that they had no specific plans. Of those which did, developing a mobile website followed by a mobile app and offering mobile payment options were priorities.

Meanwhile, 57 percent of consumers polled suggested that all shops should offer free hotspots with a further 42 percent stating that they were always on the lookout for free Wi-Fi hotspots when out and about.

Richard Lowe, managing director and head of retail and wholesale at Barclays, said: “The size of the retail opportunity is clear for all to see. The question every retailer should be asking themselves is what they are doing about it to not only satisfy today’s consumer but, also tomorrow’s.

“There is a lingering notion that mobile shopping is bad for store retailing. The physical high street store still has a fundamental role to play and the development of hybrids such as click and collect has conclusively demonstrated that stores can be supported rather than hindered by the growth of digital commerce. Retailers must cater for the mobile consumer in order to remain relevant.”