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Shoppers turn to net in Christmas run-up



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Published Date: 16 December 2008
ONLINE sales of fashion accessories and alcohol have set the e-tills ringing, as more shoppers turn to the internet instead of the high street in the run-up to Christmas.
Figures released today show that, as the festive party season kicks in, sales of shoes and accessories grew by 32 per cent and 108 per cent respectively from October.

Online sales as a whole are up 16 per cent on last year, according to Interactiv
e Media in Retail Group (IMRG) and Capgemini.

However, sales of clothes were up by just 18 per cent, suggesting consumers are settling for updating their wardrobes, rather than splashing out on new outfits.

Last night, Fiona Moriarty, director of the Scottish Retail Consortium, said: "All of us are doing a lot more Christmas shopping online. What this data does reveal is how our spending behaviour is changing, and that is mirrored in our own figures for retailers in Scotland.

"There is a slowdown in spending on more expensive items and retailers are seeing a surge in smaller gift items."

She added: "These figures will not be surprising to anybody: internet sales have been increasing year-on-year for the past few years."

Online shoppers also turned to the internet for alcohol purchases, with spending up 53 per cent last month compared with October.

Leigh Sparks, a professor of retail studies at Stirling University, told The Scotsman: "Online alcohol is not that difficult to ship, particularly if you look at stores like Tesco and what they are doing with their wine club. Crates are fed through their existing distribution systems. So, if you are the consumer, and you don't have to go to the warehouse, stick it in a trolley, lug it to the check-out and can just get someone else to do it, why wouldn't you?"

He added: "There is always a spike at Christmas time, so I can well believe that sales of fashion accessories as well as other items are shooting up. People shop online for all sorts of reasons – some really are trying to avoid the high street, which can be a crush at this time of year.

"But also people have begun to trust online retail more, and delivery times are pretty standard.

"All the difficult news coming out of the high street at the moment says that there is far more resilience online than there has been on the high street."

James Roper, the chief executive of IMRG, the industry body for e-retailers, said: "While we would naturally expect to see a monthly increase in online sales during this time of the year, it is perhaps surprising that we are continuing to see yearly growth during these otherwise difficult times for retailers.

"This is a sure sign that high-street retailers should look to diversify their activities by fully embracing the online space, as their customers have."

He added that he expected the online sales to be even higher next month, reflecting last-minute Christmas shopping.

Mike Petevinos, head of retail consulting at Capgemini UK, said: "The Christmas spirit is with us, but it seems clear that shoppers are being more considered than ever in making their generosity fit their budgets.

"The current climate is making consumers turn to the internet to help make more informed value decisions and purchases."

The IMRG/Capgemini e-retail sales index tracks online transactions based on data from around 60 retailers who sell online.

These include internet-only retailers, plus the high-street chains with online stores.

Last year, more than three and a half million people across the UK were expected to shop online on Christmas Day.

Experts predicted most people would log on after the Queen's Speech to buy goods and services worth a collective £52 million – an overall spend 66 per cent higher than in 2006.

FACT BOX

• 90 per cent of retail spending is still done in the traditional way, namely in shops, according to Interactive Media in Retail Group (IMRG).

• 17p in every £1 of retail spending this year was accounted for by internet shopping, compared with 15p last year.

• 20 per cent year-on-year growth is being experienced by the John Lewis website, while the group's out-of-town shops have reported dips in sales.

• £26.5 billion in online sales was reported in the first six months of this year.

• 8-10pm is expected to be the busiest time for online shopping on Christmas Day.

• 25-40-year-old women are the target market for firms selling lingerie online.



The full article contains 770 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 15 December 2008 10:16 PM
  • Source: The Scotsman
  • Location: Edinburgh
 
 

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