Online spending in 2008 reached record levels
The recession is accelerating the rate at which the internet is impacting the retail sector
Overall online spending in 2008 reached record levels for each individual month (IMRG Capgemini e-Retail Sales Index).
UK shoppers spent over £4.67 billion online in December. This represents an equivalent of £76 for every person in the UK, an increase of 14.2% on December 2007. This growth comes despite the peak internet shopping weekend being on 29th and 30th November.
Supporting research from Capgemini reveals that shoppers are turning to the web to beat the credit crunch, showing how online spend can continue to grow despite static or falling growth on the high street. Whilst traditional factors such as researching the best prices online were reported by almost half (44%) of the 2,000 consumers surveyed, it is clear online retail is now part of mainstream shopping behaviour.
A third of shoppers (37%) did more than half of their shopping online, with nearly two-thirds (59.9%) spending more online this Christmas than last year.
Clothing, footwear and accessories is the fastest growing sector – it has consistently outperformed the total market and other sectors throughout 2008 up by 32% year on year in December. The average basket value for clothing is £57 where gifts is £44.
James Roper, Chief Executive and Founder of IMRG, said: “It is becoming apparent that the recession is accelerating the rate at which the internet is impacting the retail sector. The traditional retail model in which stock is held in an outlet for collection by the consumer is giving way to a hybrid model that emphasises the store’s role as a display area and leisure destination, and the value of both these aspects diminish in a recession.”
“Retailers that are nimble in a cross-channel environment give their customers a more efficient, easy-to-use service and are rewarded with increased conversion rates and larger average shopping baskets.”
Mark Hodson, UK Marketing Director at PayPal said: “The latest figures from IMRG* show that our love affair with online shopping is as intense as ever, despite the credit crunch. While the high street had a tough time in December, IMRG confirms that people did open their wallets this Christmas - they just did it online.
“Recent research from PayPal revealed over three-quarters (77%) of online shoppers believe shopping online is more convenient than shopping on the high street. That convenience and the perception that the biggest bargains are found on the internet have given e-tailers a big advantage in what the British Retail Consortium have called the worst December on record. In the current economic climate it will be even more important for retailers to see how the internet can play to the strengths of their business. Creating an impressive ‘virtual shop’ is one way to stay ahead of the game – helping smaller retailers to compete with the biggest names on the high street. “
UK shoppers spent over £4.67 billion online in December. This represents an equivalent of £76 for every person in the UK, an increase of 14.2% on December 2007. This growth comes despite the peak internet shopping weekend being on 29th and 30th November.
Supporting research from Capgemini reveals that shoppers are turning to the web to beat the credit crunch, showing how online spend can continue to grow despite static or falling growth on the high street. Whilst traditional factors such as researching the best prices online were reported by almost half (44%) of the 2,000 consumers surveyed, it is clear online retail is now part of mainstream shopping behaviour.
A third of shoppers (37%) did more than half of their shopping online, with nearly two-thirds (59.9%) spending more online this Christmas than last year.
Clothing, footwear and accessories is the fastest growing sector – it has consistently outperformed the total market and other sectors throughout 2008 up by 32% year on year in December. The average basket value for clothing is £57 where gifts is £44.
James Roper, Chief Executive and Founder of IMRG, said: “It is becoming apparent that the recession is accelerating the rate at which the internet is impacting the retail sector. The traditional retail model in which stock is held in an outlet for collection by the consumer is giving way to a hybrid model that emphasises the store’s role as a display area and leisure destination, and the value of both these aspects diminish in a recession.”
“Retailers that are nimble in a cross-channel environment give their customers a more efficient, easy-to-use service and are rewarded with increased conversion rates and larger average shopping baskets.”
Mark Hodson, UK Marketing Director at PayPal said: “The latest figures from IMRG* show that our love affair with online shopping is as intense as ever, despite the credit crunch. While the high street had a tough time in December, IMRG confirms that people did open their wallets this Christmas - they just did it online.
“Recent research from PayPal revealed over three-quarters (77%) of online shoppers believe shopping online is more convenient than shopping on the high street. That convenience and the perception that the biggest bargains are found on the internet have given e-tailers a big advantage in what the British Retail Consortium have called the worst December on record. In the current economic climate it will be even more important for retailers to see how the internet can play to the strengths of their business. Creating an impressive ‘virtual shop’ is one way to stay ahead of the game – helping smaller retailers to compete with the biggest names on the high street. “
