UK Online Spending Rises, Diversifies

Buying goods and services is now the third-most-popular online activity in the UK behind accessing information and communicating with others, according to June 2008 data from UK trade group the Institute of Practitioners in Advertising (IPA).

The range of products bought online is also growing. Books, music, tickets and clothes have long been the leading retail e-commerce categories. Now the large supermarket chains all have well-established online stores and reliable delivery systems, which make online grocery shopping extremely attractive. A full 44% of UK Internet users surveyed nationwide said they had shopped online for groceries, and nearly one-half of Londoners said they had done so.

"This is great news for online retailers," said Karin von Abrams, senior analyst at eMarketer. "There is no doubt that the rising cost of fuel is tempting consumers to shop at home, and the trend will probably be buoyed by their need to ensure they are getting value for money."

UK retail e-commerce spending will reach £44.9 billion ($83.9 billion) in 2012, according to Verdict Research.

Mintel International Group predicted slightly lower sales in 2012, reaching €56.0 billion ($73.36 billion). Neither company provided 2008 figures to the public.

Ms. von Abrams said that still more businesses would probably benefit from increased online buying.

"Well-run online department stores, such as UK bedrock retailer John Lewis, will likely also capitalize on the benefits of Internet shopping in an economic downturn," she noted.