Executive Summary

This report looks at three major developments in Western Europe ecommerce: sales and consumer purchasing patterns during the 2018 holiday season; the continuing spread of online grocery shopping; and ways in which global retail giants Amazon and Alibaba are gaining clout in key European markets.

How much are digital buyers in Western Europe’s main markets spending online?

Retail ecommerce sales in the EU-5—France, Germany, Italy, Spain and the UK—are expected to pass $325 billion this year, and surpass $400 billion in 2022.

What patterns emerged in digital sales during the 2018 holiday shopping season?

Participation in Black Friday and Cyber Monday has risen sharply in recent years, encouraged by retailers’ heavy discounting. Online traffic in France on Black Friday was 129% higher than the daily average during October 2018, and sales were up 265% on Black Friday 2017, according to Criteo. Christmas also remains central to the shopping season.

How many internet users in Western Europe shop online for groceries?

Eurostat reported that 32% of digital buyers in the UK and 23% of those in Germany bought groceries on the web in 2018. But those shares were substantially lower in France (17%), Spain (12%) and Italy (6%).

How is Amazon increasing its sales and influence in Europe’s markets, and how does that strategy differ from Alibaba’s?

Amazon is investing heavily in warehouses and other logistics capabilities to serve Western Europe. Since its 2017 purchase of Whole Foods, the company also aims to boost food sales and delivery, and is moving into financial services with Amazon Payment and Amazon Insurance (in the UK). Alibaba’s retail platform, AliExpress, is partnering with several regional store chains, including Spain’s El Corte Inglés, and promoting its own payment solution, Alipay.

WHAT’S IN THIS REPORT? This report offers an overview of digital sales patterns in Western Europe’s 2018 holiday season and the growth in online grocery buying in recent months. It also looks at moves made by Amazon and Alibaba to gain customers and revenue in the region.

KEY STAT: In 2019, retail ecommerce sales will vary substantially across the EU-5, from less than $20 billion in Italy to more than $137 billion in the UK—the region’s leading market by far.