UK Internet Sales Expected to increase by 14% in 2012
8th March 2012
Online sales are expected to increase by 14% in 2012 in the UK taking 13.2% of all retail sales, worth an estimated £57.39 billion. In the UK, online sales represented over 12% (£50.34) billion of all retail sales in 2011 representing a 14% increase over the previous year. As a comparison, online sales in 2008 were equivalent to only 8.6% of retail sales. We can therefore see a shift to online sales even as the UK economy slows. The forecast figures indicates the UK online share of retail business at 13.2% will be the highest in Europe at outperforming Germany 10% and France 8.7%. Major retail brands shift emphasis to online and mobile The major brands are now taking a greater share of the online market as the online market matures. Major investment in e-commerce over the last few years by major retailers is having a significant impact on online-sales. The major brands were slow to enter the market but are now seeing their investment in e-commerce starting to pay off. Online collection pionts will expand in 2012 The trend of using retail outlets as distribution / collection points for established retailers is set to grow strongly in 2012. It offers consumers more choice and reduces the need for retailers to hold stock thereby reducing costs. Major retail brands invest heavily John Lewis invested heavily in 2011 spending around £43m on modernising its IT and online business. This is serious money by any standard. Lisa Byfield-Green, analyst at Planet Retail, said: “John Lewis is investing in the future with its click & collect, e-commerce and mobile commerce operations, which are setting it apart as a leading multi-channel player. The company’s forward-looking strategy will give John Lewis a competitive advantage as the market continues to develop.” Waitrose.com sales rose 34.5% in 2011. The click & collect service is now available in 152 branches. The company said its "click and collect" strategy played an important part in sales growth at John Lewis, with online trade up 24.2%. 2012 growth and investment The message is clear online sales continue to grow, major brands are increasing investment in e-commerce and distribution IT services to allow collection services to operate alongside their retail outlets. Major online brands such as Amazon has invested heavily in their mobile tablet Kindle Fire which allows users to access and store huge amounts of digital content seamlessly. Both traditional retailers and the major online retailers are investing heavily in the online future of their businesses. The medium to smaller sized companies will have to be more innovative and improve their online offering significantly if they are to compete. This will require these business to invest more in e-commerce and spend more online marketing. This year will see more business competing harder to boost online sales and better utilise their distribution points. The impact on UK high streets could be profound. If you would like more information on online marketing call us today on 0845 163 8000.
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