Online shopping goes from strength to strength
Consumers are spending more than ever via the internet, new figures have revealed. A study conducted by Verdict Research showed that online shopping is growing faster than at any time in the last six years and is hitting record levels. While the High Street is suffering the effects of the credit crunch and economic slowdown, no such brakes are being applied online. Verdict reported that e-retail purchases climbed by 35 per cent to £14.7 billion last year, a rate of growth that is nearly ten times greater than that of the overall UK retail market. With faster broadband speeds coming on stream, the rate of expansion looks all set to continue. Online shoppers are expected to splash out £44.9 billion by 2014, a figure that will represent 13.8 per cent of all retail purchases. As well as spending more (up 7.8 per cent), there are ever greater numbers of online consumers. In 2007, some 22.6 million went online to shop electronically, a rise of 24.7 per cent. Those shoppers are buying more frequently too, averaging 16.9 transactions, 2.7 times up on the previous year. In the survey of over 4,000 people, the majority pointed to the convenience of the internet as the main reason for shopping at the click of a mouse. It is not all bad news for the High Street though, said Verdict, with bricks and mortar outlets still likely to play a big part in people’s shopping habits. Malcolm Pinkerton, senior retail analyst at Verdict, commented: “In many cases, online and in-store sales channels will blur into one, becoming fully integrated. There is still a need for physical locations but the number of stores required will vary according to sector. Having an internet presence is now vital and the combination of an in-store and online presence, with strong links between the two, is essential.” Mr Pinkerton added: “The internet is widely perceived as a cheaper and easier way of finding lower prices and bargains in most sectors. As the cost of broadband falls, consumers become accustomed to internet shopping and retailers continue to enhance their online propositions, the channel will find itself well-placed to capitalise on the falling consumer confidence and lower levels of disposable income impacting the retail market.” Date:4 June 2008
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