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Online Sales to Rescue Retail Sector
Listed under: News
Published: Friday, June 26, 2009
Internet spend is expected to rise 137% over the next two years, reaching an estimated £21.3 billion – according to new research commissioned by online payment service PayPal.
With up to nine million people in the UK reportedly shopping online at least once a week, the findings predict that by 2012 one in every £14 spent in Britain will be via the net – amounting to the online retail category more than doubling its market share by 2011.
Commenting on the report, PayPal's Carl Scheible says, “The value of online retail can no longer be dismissed as a sideshow. Its phenomenal growth will ensure that the entire UK retail sector is growing again by the end of 2011. The recession has been tough for many UK retailers as they deal with the slowdown and its knock-on impact on consumer spending. However, many of the major high street brands have actually enjoyed the online boom, despite facing challenges in their own stores.”
He adds, “In our experience the retail winners from this recession will be those that work hard to meet expectations. If customers have come to expect fantastic service on the high street, retailers must make sure they aren't disappointed if they head online. Customers want good value, simplicity and security when they decide where to spend their money.”
Retailer Karen Sayers, who owns bricks and mortar store Crafty Ideas in West Sussex, agrees internet sales are on the rise. “We've definitely noticed an increase in website transactions over the past year and don't appear to have been affected by the current economic downturn at all. If anything, the business is thriving! A lot of it has to do with convenience. People work such long hours these days and shopping online allows them to stock up on their everyday crafting supplies without leaving the house.”
However, its not just the internet side of the business that is doing well. “The shop has been really busy this year and fortunately we haven't seen sales drop in either outlet. Generally speaking, everything seems to be doing really well at the moment and we're quite excited about the year ahead.”
Will a rise in internet sales be good or bad for the craft sector? Email us your thoughts at .(JavaScript must be enabled to view this email address)
With up to nine million people in the UK reportedly shopping online at least once a week, the findings predict that by 2012 one in every £14 spent in Britain will be via the net – amounting to the online retail category more than doubling its market share by 2011.
Commenting on the report, PayPal's Carl Scheible says, “The value of online retail can no longer be dismissed as a sideshow. Its phenomenal growth will ensure that the entire UK retail sector is growing again by the end of 2011. The recession has been tough for many UK retailers as they deal with the slowdown and its knock-on impact on consumer spending. However, many of the major high street brands have actually enjoyed the online boom, despite facing challenges in their own stores.”
He adds, “In our experience the retail winners from this recession will be those that work hard to meet expectations. If customers have come to expect fantastic service on the high street, retailers must make sure they aren't disappointed if they head online. Customers want good value, simplicity and security when they decide where to spend their money.”
Retailer Karen Sayers, who owns bricks and mortar store Crafty Ideas in West Sussex, agrees internet sales are on the rise. “We've definitely noticed an increase in website transactions over the past year and don't appear to have been affected by the current economic downturn at all. If anything, the business is thriving! A lot of it has to do with convenience. People work such long hours these days and shopping online allows them to stock up on their everyday crafting supplies without leaving the house.”
However, its not just the internet side of the business that is doing well. “The shop has been really busy this year and fortunately we haven't seen sales drop in either outlet. Generally speaking, everything seems to be doing really well at the moment and we're quite excited about the year ahead.”
Will a rise in internet sales be good or bad for the craft sector? Email us your thoughts at .(JavaScript must be enabled to view this email address)
