Online retail spend to reach 44.5bn in 2012

Verdict Research Consulting reports that online retail spend will grow 32% this year to be worth £19.5bn, or 6.7% of all retail sales. By 2012 it is expected to account for almost 14% of all retail expenditure.

Comparatively, offline sales are predicted to grow by just 1.2% in 2008, which is well below the average growth rate of the past five years.

Neil Saunders, Verdict's director of consulting, said: "Internet retailing seems to be laughing in the face of the economic slowdown.

"While more muted consumer sentiment may have a slight downward impact on online growth rates, the internet seems much better placed than physical locations to weather the storm."

The research found that consumers feel the internet is more convenient and better for browsing and comparing prices.

Verdict suggests that the key to the future success of retailers will be multi-channel retailing -- using the combination of physical shops and an internet presence, with strong links between the two.

Saunders said: "Having an internet presence is now more important than ever. Any retailer that doesn't have one is essentially shutting the door on a very lucrative stream of growth.

"And in this current environment there are very few retailers who can afford to do that. As such, the future for successful retailers isn't about choosing between bricks or clicks, it's about bricks and clicks."