Online continues to shine with 15% growth this Christmas
Online retail is set for another bumper Christmas as consumers continue to embrace the internet to purchase gifts for friends and family.
* Internet sales to account for over a fifth of December retail spend
* Online sales to reach 20% of total retail market in next decade
Deloitte predicts that online retail sales could increase by 15% this Christmas, compared with total retail sales growth of approximately 1%. This would take online retail sales in December to around £8 billion, or 23% of total retail spend, well over double its annual share.
Richard Hyman, Strategic Retail Adviser to Deloitte, said,"Online has been the great success story for retail over the past decade. Convenience and value makes it a particularly popular channel at Christmas when it is disproportionately important, more than doubling its annual share of total retail spend. Next year is going to be tough for the retail industry as a whole, but online will continue to grow quickly. Therefore, it is critical that retailers get their online offering right. Growth will not be easy to come by and online is an opportunity retailers simply cannot afford to ignore."
UK consumers lead the way against their European neighbours when it comes to online retail. In a recent survey of 20,000 consumers across Europe, 54% of respondents in the UK said they would buy some of their Christmas gifts online, against 33% of consumers across Europe.
Ian Geddes, UK Head of Retail at Deloitte, said: "Online has some way to go until it reaches maturity. It represents less than 10% of the total retail market but will grow more quickly than total retail sales for some time. With the adoption of tablet PCs and Smartphones making it easier to shop on the move, we think online sales could account for close to 20% of total retail spend by the end of the next decade.
"Mobile is also playing a role in the emergence of Christmas Day as one of the busiest online shopping days of the year. People can now sit on the sofa enjoying Christmas with the family whilst surfing the sales on their iPad. We expect Christmas Day spending to continue to increase."
The Retail Bulletin is organising their 2nd Multichannel Summit, to be held in London February 2nd 2011. The event is sponsored by k3 retail and will look at how retailers can maximize profits, market share and loyalty through cost effective, seamless, integrated multichannel strategies.
If you would like to attend as either a delegate or Networking Partner, go to www.retailbulletinconferences.com/multichannel2011
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