Internet shopping in the UK rose by a almost 50% during the ten week run-up to Christmas 2005, with shoppers spending £5 billion online, compared with £3.33 billion during the same period in 2004.
According to new figures from the Interactive Media in Retail Group (IMRG), sales peaked during the week commencing 5 December, with a massive £653 million spent online.
Commenting on the figures, Jo Tucker, managing director of the IMRG said: “A step change happened in retailing at Christmas. Consumers have spoken. They want the convenience and choice that online shopping provides.”
Tucker continued: “Many just don’t have the 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 it will dominate the retail agenda for the next several years.”
Last year saw remarkable growth in the online shopping industry, with the IMRG revealing that UK consumers spent £19.2 billion on goods and services, not quite reaching the £19.6 billion expected by the IMRG.
The year-on-year growth rate accelerated strongly throughout the year, tripling from the year low of 13% in February, to almost 50% at Christmas. The report revealed that 24 million British consumers shopped online in 2005, spending on average £816 each during the year, and £208 in the run-up to Christmas.
The strong performance seen in 2005 has led the IMRG to forecast UK e-commerce to increase by 36% in 2006, with sales worth £26 billion. Shoppers are expected to each spend on average more than £1,000 for the first time in 2006.
James Roper, chief executive officer of the IMRG added: “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. So huge growth potential remains for the merchants who plug these holes.”
Figures released earlier this month from online monitor, Hitwise, revealed a rise of 14% year on year in visits to UK retail websites over the Christmas month (see Visits To UK Retail Websites Up 14% In December).
The strong performance seen in the UK’s online retail sector was mirrored in the US, with the recent Holiday eSpending Report from Goldman Sachs, Nielsen//NetRatings and Harris Interactive showing online shopping spend to have reached $30.1 billion during the holiday season, up 30% year on year (see Visits To UK Retail Websites Up 14% In December).
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