20 January 2006

Christmas boost for online shopping

Internet shopping among UK consumers increased by almost 50% in the ten weeks before Christmas, a report has revealed.

The IMRG report found that shoppers spent £4.98 billion online, compared with £3.33 billion during the same period in 2004.

Sales peaked during the week beginning December 5, when £653 million was spent online, while transactions worth £584 million were recorded for both the previous week and the following week.

Jo Tucker, IMRG's MD and director of the IMRG Index programme, commented: "A step change happened in retailing at Christmas. Consumers have spoken. They want the convenience and choice that online shopping provides. Many just don't have time to trudge the streets hoping goods are in stock. There can no longer be any doubt that the Internet is a major part of the retail landscape and that it will dominate the retail agenda for the next several years."

2005 was a year of "remarkable dynamic growth" for UK online shopping, with UK consumers spending £19.2 billion on goods and services - nearly a third more than in 2004.

Twenty-four million British consumers shopped online in 2005, spending on average, £816 each during the year and £208 in the run-up to Christmas.

IMRG predicted that UK e-retail would increase by 36% in 2006, with shoppers spending, on average, more than £1,000 for the first time.

IMRG's CEO James Roper said: "A surprising number of goods are still either hard to find or unavailable online. Large gaps exist in the supply market, such as high-end fashion and real estate. Even leading retailers often only make a small proportion of their total inventory available online and many don't bother with spares at all. So, huge growth potential remains for the merchants who plug these holes."

(KMcA/CL)