RETAIL: Craft Shop Refutes E-Sales Report
Listed under: News
Published: Friday, July 18, 2008
A new survey suggesting website sales increased by a whopping 38% in the first six months of 2008, now accounting for 17p in every £1 consumers spend, has met with consternation from online craft shops.
A survey by e-retail body IMRG and technology consultancy Capgemini shows UK shoppers have spent over £26.5 billon online so far this year compared with £19.2 billion in the first half of 2007. The authors of the report predict online sales will account for up to half of all retail purchases within the next five years. Mike Petevinos, head of retail consulting for Capgemini, says "While online retail is not immune to the credit crunch, it is showing greater resilience than the high street. The online channel continues to give thanks to the traditional drivers of convenience and choice, but these appear to be magnified by the current economic environment. We predict between 30 and 50% of all retail will be online in the next five years as new drivers, such as sustainability, are added to the mix. As online sales reach 20% of all retail sales, retailers will experience a tipping point which will force them to seriously re-think the future viability of their business model.” James Roper, chief executive and founder of IMRG, adds “Online shopping growth continues to out-perform the high street, as tight budgets and poor weather keep people at home where they can shop online for bargains.”
However, Jill Walker, owner of online craft store http://www.jillcraft.co.uk, has mixed feelings about the results. “I can give you two points of view on this,” she says. “My website business has drastically gone downhill but my husband is still happily spending away online. Sales have decreased dramatically and I have noticed a lot of suppliers reducing their minimum order. I think everyone is struggling and I honestly can't say whether things will be getting better anytime soon. “
Despite this there was good news for retailers this week as the International Monetary Fund (IMF) improved its global economic forecast for the year, suggesting the effects of the credit crisis are not as bad as initially anticipated. The organisation expects the world economy to grow by 4.1% this year, significantly higher than the 3.7% initially predicted. While the UK's growth is expected to rise 1.8% this year and 1.7% in 2009.
If you would like to comment on this story or any other issue affecting your business, please do not hesitate to contact me at
However, Jill Walker, owner of online craft store http://www.jillcraft.co.uk, has mixed feelings about the results. “I can give you two points of view on this,” she says. “My website business has drastically gone downhill but my husband is still happily spending away online. Sales have decreased dramatically and I have noticed a lot of suppliers reducing their minimum order. I think everyone is struggling and I honestly can't say whether things will be getting better anytime soon. “
Despite this there was good news for retailers this week as the International Monetary Fund (IMF) improved its global economic forecast for the year, suggesting the effects of the credit crisis are not as bad as initially anticipated. The organisation expects the world economy to grow by 4.1% this year, significantly higher than the 3.7% initially predicted. While the UK's growth is expected to rise 1.8% this year and 1.7% in 2009.
If you would like to comment on this story or any other issue affecting your business, please do not hesitate to contact me at
There are currently 0 comments - Have Your Say Today