R E L A T E D C O N T E N T

Christmas cracker for e-commerce

New research shows 15 pence in every pound now spent online

Phil Muncaster, IT Week 18 Jan 2008

E-commerce got another boost today with the latest figures for online retail spending showing that £15.2 billion was spent online in the 12 weeks running up to Christmas 2007.

The latest e-retail sales index from industry body the Interactive Media in Retail Group (IMRG) and consultancy CapGemini reported that 15 percent of all retail spend is now online, with December's sales almost 50 per cent higher than 2006, despite a slight tailing off towards the end of the year.

The largest sales growth came in the electrical sector, with 60 per cent, while the clothing sector showed a 28 per cent increase over December 2006. Marks and Spencer, which reported poor high street sales results, actually showed a 78 per cent growth in its online channel.

"If you look at availability, capacity and familiarity, it's clear that there's huge further potential for growth in this area," said IMRG chief executive James Roper. "If it continues in anything like this shape, in five years time half of all retail will be online."

Anthoula Madden, vice president of CapGemini's consumer products and retail team, argued that retailers must still work to meet heightened customer expectations of service, particularly in delivery.

"Those with good results have addressed the front-end web site as well as [things like] the supply chain and warehousing," she added. "The full value chain is important here."

In related news, a new report by online market research firm eDigital Research found that 22 per cent of respondents went online on Christmas Day and 31 per cent on Boxing Day, for pre purchase research into products and prices.

The research suggests an increasing sophistication in consumer shopping behaviour and the need to integrate offline and online channels more efficiently to meet customer demand, according to eDigital Research director Chris Russell.

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