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Online sales expected to quadruple by 2020
Economics

Online sales expected to quadruple by 2020

2 min. 22.05.2012 From our online archive
The Conféderation Luxembourgeoise du Commerce (clc) has published a report on Luxembourg retail, giving recommendations on how the sector should prepare for future changes.

(CS) The Conféderation Luxembourgeoise du Commerce (clc) has published a report on Luxembourg retail, giving recommendations on how the sector should prepare for future changes.

The clc counts over 3,500 retail businesses in Luxembourg with around 23,000 employees. While the sector is one of the busiest in the country, it also faces several challenges both economically but also in client behaviour, says the clc.

Not only do households spend money more carefully in times of financial crisis and uncertainty, but online sales are expected to increase four to five times by 2020, and could make up around 24 percent of all retail sales by the turn of the decade.

Luxembourg's situation within the Greater Region adds additional strain on the sector, the clc finds. While it brings shoppers from the neighbouring countries to the Grand Duchy, the country has also seen a spending loss of 1.24 billion euros in 2010 by Luxembourgers shopping across the border.

Economic future for retail hard to predict

While the large-scale economic situation is hard to predict on the whole, the clc has identified several social factors which will contribute to changes in retail behaviour over the years.

These include changes in environmental awareness and social conscience, with an increased demand for green or fair trade products. Changes in work-life-balance make shoppers look for efficient shopping possibilities, tailored to suit their needs. Far from so-called megatrends, the clc is expecting more individualised shopping needs to emerge over the years.

The confederation is expecting the highest negative impact on large-scale supermarkets and shopping centres, estimating that customers will look to shop more locally, to gain a better understanding of where products come from, and seek a more personalised service.

Better opening hours, nicer shops, low taxes

The clc has issued a set of recommendations on how commerce but also the governmental framework should react to the change and challenges ahead. These include:

  • city planning which takes into account retail spaces, leading to better transport connections
  • re-visioning of store design, made more appealing for consumers
  • opening hours suited to the consumers' needs and habits
  • adapting marketing strategies appealing to both the individual and the general population
  • developing complementary offers instead of competition
  • maintaining a favourable financial climate, including low VAT rates and keeping inflation at bay
  • helping shops and businesses to create a web presence with online retail
  • repositioning retail professions on the job market
  • making employers and employees aware of the need for quality of service and social competences