UK Report: Online Christmas Shopping on the Increase

UK online spend on track for an all time Christmas high, while bricks and mortar sales dive.

As reported by Internet Retailer, this coming December, UK shoppers will spend 6.4 billion pounds online – up 16.4% from 5.5 billion pounds for the same month last year, according to a recent report by the e-retail trade group, Interactive Media in Retail Group (IMRG), and technology and consulting firm, Capgemini.

The report also reveals that the country’s strong growth in online retail contrasts with a steady decrease in sales for British bricks-and-mortar retailers.

“The rise in online spending is at the expense of high street sales and we may even see an early peak with shoppers looking to spread the cost of Christmas,” says Chris Webster, Capgemini’s Head of Retail Consulting and Technology.

Online sales figures for September support Webster’s statement.  Results from last month show that the online spend of UK shoppers was up 24% from the same time last year, to 4.8 billion pounds.  Gift sales in particular increased 32% year on year for September and 8% for August.

IMRG and Capgemini predict that the overall online spend for the UK in 2010 will reach 57.8 billion pounds – up 16% from 49.8 billion pounds in 2009.

1 Comment

One thought on “UK Report: Online Christmas Shopping on the Increase”

  1. Hi Elisabeth,

    Thanks for this great piece of data and insight. It’s truly exciting news!

    I’d just like to point out to the readers of PowerRetail.net that whilst the sales figures you report from various sources in the UK are extremely exciting for all of us working in e-commerce over here, it’s the ‘sum of the parts that count.’

    The IMRG report that multi channel retailers enjoy far higher growth of sales online than a pureplay as they can deliver a more compelling customer proposition in terms of enabling the customer to choose the channel they buy from, receive their goods from and return their goods to.

    Also, a retailer with a store channel can drive a significant volume of sales through their website to their stores.
    For example, Boots (The chemists) have 40% of orders placed online picked up in their stores, which subsequently provides store staff with the opportunity to cross sell to customers.

    Macy’s believe that for every $1 they take online, the web drives $5 of sales in their stores.

    As it happens, the IMRG predicts that if the current sales trends continue, by 2019, the web will deliver a higher volume of sales growth than the bricks and mortar channel of a retailer… Now that is quite amazing!

    Thanks,

    Martin

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