I thought you might be interested in this article from Marcus Austin and is sourced from: www.internetretailing.net
Online spending is growing at its fastest rate for six years and high growth looks set to continue...
Despite the credit crunch and general doom and gloom on the high street, online spending is growing at its fastest rate for six years and high growth looks set to continue. The reason? Canny shoppers who are feeling the squeeze are using the internet to hunt down the very best bargains and the very lowest prices.
Online retail sales are growing at rate ten times higher than the overall UK retail market, says Verdict, with sales up 35% to £14.7bn in 2007. And this strong growth is set to continue with online retail sales set to reach £44.9 billion by 2012 and, longer term, growth continuing as today's younger shoppers get older and their income and spending power increases.
"The internet is widely perceived as a cheaper and easier way of finding lower prices and bargains in most sectors," explains Malcolm Pinkerton, Senior Retail Analyst at Verdict Research and author of the new report 'UK e-Retail 2008'. "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 extremely well-placed to capitalise on the falling consumer confidence and lower levels of disposable income currently impacting the retail market."
Online retailing alone is not the whole answer, however. "Despite some degree of cannibalisation, physical shopping is far from doomed. There is still a need and place for physical locations, the key is to ensure that synergies with online retailing are exploited to drive footfall to stores," Pinkerton adds. "While having an Internet presence is vital, giving the consumer choice by establishing strong links between the in-store and online offer is now essential... In many cases online and in-store sales channels will simply blur into one, becoming fully integrated."
This article was written by Marcus Austin and is sourced from: www.internetretailing.net
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