Following a year of lockdown-related growth in 2020, retail ecommerce sales in Western Europe will continue to rise for the next several years. By the end of 2022, ecommerce sales will account for 14.8% of total retail sales in the region and hit nearly $660 billion.
Ecommerce helped retail out of a sticky spot during the pandemic, and those habits formed during lockdowns will endure, as digital demands more attention than ever—37.5% of all retail sales this year will be ecommerce sales.
Spain’s retail and ecommerce market also makes it an attractive destination for Square to capitalize on high consumer spending: Retail sales in Spain are expected to increase 10.2% YoY this year, hitting $345 billion, according to our forecasts.
Retailers, meanwhile, are embracing the transition to ecommerce. For example, Next announced plans to spend above pre-pandemic levels on marketing this year, per an April article from Marketing Week. The UK retailer also said it would prioritize digital marketing channels while pulling back on print and TV advertising.
The UK’s digital advertising industry weathered the pandemic remarkably well. Among the industry sectors we track, digital ad spending will rise across the board (which was not universal last year), but these patterns of growth will fluctuate wildly across categories.