Shoppers in the United Kingdom, UK, Spent 17 pence in every pound online in the first half of the year. The credit crunch and rising food and fuel bills have forced shoppers to seek out bargains away from high street stores, while online sales have reached nearly 20 per cent of total retail spending. The total internet spend was 26.5 billion pounds, which is an increase of 38 per cent over the same period last year, according to a survey based on figures from IMRG Capgemini and the British Retail Consortium.
The survey said said shopping in cyberspace had become more popular because consumers were being more cautious about their finances. A sharp rise in living costs, fuelled by energy and food prices, and the rising cost of borrowing have put household budgets under considerable strain. Convenience has a sharper edge in a world of soaring fuel prices.
The report added that the credit crunch and rising inflation had dented internet sales, compared with 2007. But webbased shopping continued to out perfom the high street, said James Roper, chief executive at IMRG. ” Clothes and footwear sales were the biggest losers in physical stores in June, with sales either flat or lower than last year despite heavy and widespread discounting.” he said.
The report found out that internet clothing sales rose by 32 per cent, lingerie sales by 37 per cent and footwear by 38 per cent. In total, 1.76 billion was spent on clothing online in the first six months of 2008. Mike Petevinos, head of retail consulting at Capgemini, believes online shops are more resistant to tough trading conditions than bricks-and- mortar stores.” Convenience has a sharper edge in a world of soaring fuel prices and the ability to research and make more informed choices in a time of heightened price sensitivity is a key advantage of the online channel,” he said.