19 June 2018
Visit www.gemalto.com

Christmas shoppers spend £5bn online

20 January 2006  |  4928 views  |  0 user woman on computer

Internet shopping soared almost 50% during the 10-week run-up to Christmas 2005, with British shoppers spending almost £5bn online, acccording to figures from industry body Interactive Media in Retail Group (IMRG).

IMRG says shoppers spent £4.98bn online in the run up to the holidays, compared with £3.33bn during the same period in 2004. Sales peaked during the week commencing 5 December when £653 million was spent online.

Jo Tucker, IMRG's MD who directs the IMRG Index programme, says a step change happened in retailing at Christmas and consumers have opted for the convenience and choice that online shopping provides.

The end-of-year surge followed a year of dynamic growth for UK online shopping, says IMRG, with the amount spent on goods and services online rising 32% to £19.2bn, compared to 2004.

A total of 24 million UK consumers shopped online in 2005, spending an average of £816 each during the year and £208 over the Christmas period.

Says Tucker: "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."

Internet sales are now thought to account for around nine per cent of all UK retail spending. The rise is having a knock-on effect on tradition retailers, with firms such as HMV and Waterstones complaining of weaker sales in the pre-Christmas period because more customers are choosing to shop via the Web.

IMRG forecasts that UK e-retail will grow 36% in 2006, and sales will be worth £26 billion for the calendar year. Shoppers are expected to each spend on average more than £1000 online for the first time in 2006.

However IMRG's CEO, James Roper, says a surprising number of goods are still either hard to find or unavailable online and 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," he adds.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Fraud fears hitting online shopping

Fraud fears hitting online shopping

19 October 2005  |  8751 views  |  0 comments
Brits turn to the Web for shopping and banking

Brits turn to the Web for shopping and banking

22 February 2005  |  4593 views  |  0 comments
Safety first warning as Brits turn to the Web for Christmas shopping

Safety first warning as Brits turn to the Web for Christmas shopping

26 November 2004  |  3394 views  |  0 comments
Brits switch to shopping on the Web

Brits switch to shopping on the Web

17 September 2004  |  4154 views  |  0 comments
Over a million UK shoppers hit by online fraud

Over a million UK shoppers hit by online fraud

08 July 2004  |  6225 views  |  0 comments
British spend £2 billion a month shopping online

British spend £2 billion a month shopping online

13 June 2003  |  4478 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit http://go.jumio.com/finextraAdVisit iliad-solutions.com/Visit equensworldline.com

Who is commenting?

A Finextra member Finextra Member Commented on: BIS: Cryptocurrencies...
A Finextra member Finextra Member Commented on: BIS: Cryptocurrencies...
A Finextra member Finextra Member Commented on: BIS: Cryptocurrencies...
A Finextra member Finextra Member Commented on: Monzo launches bill tr...

Top topics

Most viewed Most shared
10,000 jobs could be lost to robots says Citi10,000 jobs could be lost to robots says C...
48920 views comments | 44 tweets | 35 linkedin
Ripple exec says DLT not ready for banks...yetRipple exec says DLT not ready for banks.....
10723 views comments | 9 tweets | 32 linkedin
UK launches £2.5bn startup initiativeUK launches £2.5bn startup initiative
9622 views comments | 30 tweets | 26 linkedin
HSBC promises $17bn investment in technologyHSBC promises $17bn investment in technolo...
8458 views comments | 8 tweets | 21 linkedin
NatWest taps Open Banking for cardless online paymentsNatWest taps Open Banking for cardless onl...
8106 views 11 comments | 12 tweets | 12 linkedin

Featured job

to $120K base, 200K ote, benefits
New York City, NY - USA

Find your next job