Online Retailing Proving Economical to UK Shoppers, Sales Rising

Online retail sales in the UK are predicted to go up 15% in Q4 2008, due to rising online expenses by the shoppers in view of coming festive season.

According to the IMRG Capgemini e-Retail Sales Index, online retail sales are expected to climb to £13.16 Billion in Q4 2008, indicating a YOY increase of 15% over the same period last year, reported NetImperative.

During the period Oct-Dec 2008, shoppers in the UK are estimated to spend £13.16 Billion, i.e. £215 per person, on the online purchases. This indicates a rise of about 15% as compared over Q4 2007, whereas the sales figures displayed a decline in comparison to 54% annual growth recorded in Q4 2007. Also, the online sales of clothing, accessories and footwear are expected to remain £1.26 Billion during Q4 2008, registering an increase of above 25% by jumping over the usual economic trends.

The primary reason for the growth on online retail sales is the price differential between shopping online and directly from supermarkets. Online shopping gives more discounts and thus is more economical. Also, festive season is considered to be the main factor triggering growth in online sales. People in Britain are likely to spend extensively on retail products. During this Christmas season, Brits are expected to strongly combat with the economic crisis by raising their collective online expenses to over £1 Billion per week. It is noteworthy that the Internet is known to support the consumers in such tough economic times.

Moreover, the retailers and suppliers in Britain are expected to face tough price competition. Consequently, high instability and impressive online bargains are expected to lure smart consumers by providing them the unique opportunity to explore and capture the products before anyone else could grab that chance.

Internet retail sales in the UK seem fully prepared to successfully cross over the storm led by the financial crisis. Also, it will remain a flourishing ground for the retailers. Conquering the previous year’s delivery issues and covering the difficult path of financial meltdown will serve as a key for the future success.

According to a Research Analyst at RNCOS, “Conventional retailers are experiencing the worst time as consumers are reducing their expenditure. On the contrary, expected growth in the UK’s online sales during the economic crisis will bring relief to the retailers in the country. Boosting online retail sales will contribute significantly in bringing back the lost confidence of the consumers.”

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