According to the latest Retail Outlook from ING, online sales in the Netherlands are projected to grow 8%. This year’s increase surpasses the anticipated 2% increase in overall retail revenue. The primary reason for this variation is the recent ban on tobacco sales, which has resulted in a decrease in supermarket sales. Following significant growth during the COVID-19 pandemic, e-commerce in the Netherlands appears to have settled into a more stable phase.
The report highlights that pure online retailers are expected to outpace multichannel sellers in growth this year. This trend is driven by consumers’ preference for shopping in physical stores rather than through the online platforms of multichannel retailers. Even so, a continued transition from in-store shopping to online channels is anticipated. This comes because consumers value the convenience and broader product selection offered online.
Online retailers in the Netherlands are struggling with rising operational costs as a result of inflation, which is affecting labor, energy, renting, and purchasing costs. Last year, 338 retail companies filed for bankruptcy, and the number is rising. Compared to the same period in 2023, the first half of 2024 saw a 13% increase in bankruptcies. Unexpectedly, online retailers were involved in 29% of these cases. A majority of closures were voluntary. This indicates the tough market conditions that left many online businesses with insufficient sales to maintain operations.
Looking ahead, the future of online retail in the Netherlands appears promising despite current challenges. As consumer preferences continue to shift toward pure online retailers, there’s significant potential for innovation and growth in the e-commerce sector. While rising operational costs and increased bankruptcies present challenges, they also pave the way for more resilient and adaptable businesses to emerge. With the right strategies in place, the Dutch e-commerce market has the potential to thrive in the coming years.
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