The total Internet spending on online retailing reached about $53 Billion in the first half of 2008 in the UK, a straight rise of 38% over H1 2007, says IMRG.
The e-commerce group, Internet Measurement Research Group (IMRG), has revealed that the total Internet spending on online retailing reached $53 Billion in H1 2008, an increase of nearly 38% over H1 2007, as BBCNews reported.
The British shoppers expended 8.5 cent in every dollar online in the first half of 2008 over nearly 7.5 cent in 2007. Currently, over $289.77 Million are spent online every day and online sales contribute around 20% in the total retail spending. Also, online sales of clothing, footwear and lingerie grew by nearly 32%, 38% and 37% respectively, while alcohol and electrical goods sales declined by about 11% and 10% respectively. The total online clothing spending reached about $3.51 Billion in the first half of 2008.
Increasing difficulties of entering into the high street is a main reason for rise in the British online retail sales as problems like congestion and parking charges are encouraging many consumers to opt for online shopping over traditional shopping as online shopping is more convenient. Also, increasing awareness among the UK consumers about their finances is adding to the popularity of online shopping.
Soaring oil prices is another significant reason for increase in online retail sales as due to high oil prices, most of the people feel it useless to go to distantly located shopping malls. Also, many people are opting for online shopping in the UK as it is easy to search for discounts on basic items on Internet in comparison to traditional shopping. Further, poor weather conditions and limited budget encourages consumers to remain at home and thus, they can shop easily online.
A Research Analyst at RNCOS said, “A rise in the number of online shoppers is positively affecting the high end product market in comparison to local goods market as many people are purchasing branded goods via Internet. With rising property prices, retailers are also encouraging the trend of online shopping as this helps them to reduce their expenses. But due to growth in online shopping, many high street stores are likely to disappear as many retailers are moving online.”
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