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One pound in six was spent online last year

OUT-LAW News, 18/01/2008

One in six pounds spent shopping last year was spent on the internet. Online retail sales in 2007 were over 50% higher than in 2006, according to data from UK trade body the Interactive Media in Retail Group (IMRG).

The group's figures showed that £46.6 billion was spent online in 2007, 54% more than was spent in 2006, according to the IMRG Capgemini e-Retail Sales Index. A third of all sales happened in the Christmas period, with £15.2 billion being spent online in December.

Anthoula Madden, vice president of consumer products and retail at Capgemini, said: “Whilst we are yet to see high streets sales decline there can be no doubt online is growing its share at the expense of bricks and mortar retailers and we believe that this trend will continue."

The research showed that shops can stem the flow of spending online, but only by embracing e-commerce themselves.

"Our research shows that the retailers who have both a high street and an online presence seem to have done better than the ‘pure-plays’, so the multichannel strategy seems to be paying off," said an IMRG statement on the results. "We have seen strong results from retailers such as John Lewis and Sainsbury’s, who have spent time and effort revamping their website and addressing their supply chain delivery capability."

Electronics were a major growth area for online sales, with that sector enjoying online sales growth of 60% for the month of December. Increases in clothing and alcohol were more modest, at 28% and 20% respectively.

"Consumer behaviour has changed dramatically over the last few years and really is the driving force behind many of the changes in the e-retail landscape," said IMRG chief executive James Roper. "If retailers intend to be part of the future retail scene, they need to develop a robust online presence, and that is getting harder as the sophistication of channel increases and customers expectations rise”.

The research identified by the research was a marked increase in online spending after and even on Christmas day. Four million people shopped online on Christmas day, spending £84 million, it found.

"The sort of products customers are looking for on Christmas Day are TVs, mobile phones, digital cameras, MP3 players, digital photo frames, washing machines, tumble driers, fridges and freezers," said DeVere Forster, director of Dixons.co.uk. "They are often able to snap up sales bargains in comfort, rather than fighting the crowds on the high street on Boxing Day.”

 

 

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