Matt Johnson: How the recession has helped transform online British retailing

WE'VE once again been hit by a set of numbers that makes me want to scratch my head.

It’s not the evidence economists cited last week to assert that Britain is edging out of recession.

It’s a report from the Centre for Retail Research that will gladden the hearts of many retailers who have invested time and money in their online offer.

According to the Centre, UK shoppers spent more online than anywhere else in Europe last year, accounting for almost a third of all European sales. UK consumers spent £38bn online in 2009, or an average of £1,102 per shopper, says the Centre. Online sales now account for almost 10% of total retail sales in the UK, the Centre calculates.

It added that internet shopping would continue to grow sharply this year.

It is, by any standards, an impressive set of figures that underlines the growth and popularity of internet shopping among UK shoppers.

The predictions of further growth to follow are impressive, too. What’s also impressive is how these retail markets are succeeding in sustaining growth in both online and conventional over-the-counter activities – and all of this during a recession.

The Centre foresees total online sales hitting £42.7bn in 2010. Its researchers say 2010 is the year when we will really start to see online sales achieving a significant share of overall retail trade in the UK.

According to Bruce Fair, managing director of online shopping and price comparison site Kelkoo, which commissioned the research published this week, online shoppers were growing in confidence, with the proportion of them prepared to spend more than £1,000 or more on a single transaction rising from 12% in 2008 to 25% in 2009.

It’s his claim that the recession actually encouraged people to shop online that will cause some to scratch their heads. The recession, from which the UK has only recently emerged, helped to explain the increase in online shopping, he argues.

“In these hard times, it is no surprise that shoppers are turning to the internet rather than the high street, especially when you consider that purchasing items online can result in savings of 20% or more,” he says.

If the predictions are correct, we'll see the habits of Britain’s shoppers transformed. We’ll also see huge upheaval in the businesses that serve them.

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