Last week the BBC revealed that UK shoppers spent more online than anywhere else in Europe in 2009, representing almost a third of all European internet purchases. Although the UK has only recently started to show signs of economic recovery, research commissioned by price comparison site Kelkoo, indicates that online sales in fact grew by 12% in 2009, equating to almost 10% of total retail sales in the country. The research additionally identifies that UK consumers spent a significant 38bn online in 2009, totalling an average of £1,102 per shopper.

Figures provided by the IMRG show that online retail sales hit an all time peak of £5.46bn in December 2009. A recent survey conducted by GfK NOP has also revealed that the recent cold weather has also had a major impact on online sales, indicating that 27% of consumers who intended to go to the high street shops turned to the internet due to the freezing temperatures.

The Rise in Online Shopping

The BBC imply that it is no real surprise that shoppers have turned to the internet rather than the High Street considering the significant cost savings of up to 20% that can be made, in what still remains  a period of challenging financial times for consumers. The recession has ultimately helped to boost the overall appeal of online retail with consumers becoming more sophisticated when it comes to using the web to save money on their shopping. This is set to continue as it is expected consumers will continue to look habitually online for the best buys available.

Internet retailing has crept up on high street stores, forcing them to go online. The IMRG implies that virtually all shops that began as single physical entities now have an online presence and there is now a growing trend that high street stores and online stores are used simultaneously by shoppers.  Many consumers browse the shops to get a closer look, and then use the internet to compare the prices online and eventually order them. According to the research commissioned by Kelkoo, traditional UK retailers with e-commerce platforms are currently thought to obtain between 10% and 20% of their total turnover from internet sales.

Online Shopping Trends

The BBC provides evidence to suggest that the typical online shopper’s confidence is gradually increasing. In the last year, the proportion of UK shoppers prepared to spend £1,000 or more online on a single transaction encouragingly rose from 12% to 25%. In addition the proportion of shoppers who would tend to cap their online spending at £250 fell from 48% to 32% in 2009.

Research conducted by AC Nielsen reveals that trends in online buying have remained largely the same over the past five years, with books forming the most popular item, accounting for 41% of all retail sales.  The purchase of clothing related items, shoes and accessories in particular are on the rise and have grown to account for over a third of UK internet retail sales.

A new survey conducted by the National Retail Federation suggests that online shoppers this Valentine’s Day will spend on average, more than consumers overall. The NRF predict that online shopping will also be the top sales channel this Valentine’s Day where ‘personal and unique gifts will speak volumes as consumers dig deep into their hearts and not their wallets’.

Online Retail Predictions for 2010

The growth in online shopping is expected to continue into 2010. Research commissioned by Kelkoo predicts that online sales will hit the £42.7bn mark in 2010, more than seven times the predicted growth for the entire retail sector at 1.7%. Verdict Research further anticipates that online retail will take a further 10.7% of total UK retail sales by 2015.

Online Sales by Country 2009 & Forecast for 2010