Online shopping explodes

An increasing number of Britons are turning to the internet to do their shopping, according to new figures.

Online shopping has increased at an average year-on-year rate of 45 per cent for the past six months, according to the Interactive Media and Retail Group (IMRG).

The IMRG's figures show that £80bn of consumer spending is either on or influenced by the internet. In all, £30bn of retail spending is online, £20bn of non traditional retail including gambling and financial services is online and £30bn of offline retail sales is influenced by information gathered online.

The figures reveal that internet shopping now accounts for 10 per cent of all retail sales in the UK and that it has grown 2,000 per cent in six years.

Fifty-two per cent of shoppers are planning to reduce their High street spending in 2006 while 45 per cent say that they are willing to increase their spending with online shops.

The IMRG research also revealed that 90 per cent of shoppers researched goods online before buying them on the high street.

Bill Rowley, European general manager, Yahoo! and Kelkoo Shopping:
"As the IMRG report confirms, the influence of the internet on purchases continues to grow but it would be wrong to view this as a case of the internet versus the high street.

"Online and offline channels are becoming parts of an integrated shopping experience rather than distinct channels. Online influences the high-street purchases, particularly for complicated or expensive products, but the reverse is also true – many of the top brands on the high street are top performers online as well: Apple, Marks and Spencer, Tesco, to name a few.

"The ability to research potential purchases is a key attraction of the internet. Price comparison is one aspect but the quality of the product and the seller is also important and users are increasingly turning to the online community via ratings and reviews and other forums to find this information."