Online retail to reach £44.9bn by 2012

Online retail reached £14.7bn in 2007 and is set to jump to £44.9bn by 2012, according to the latest study from Verdict Research.

Electricals accounted for a quarter (25.1%) of online retail spending in 2007, followed by food & grocery.

But, food & grocery is expected to experience strong growth in the next five years, and account for 29% of all online sales in 2012, while electricals will fall to 22%.

The research showed broadband access is on the rise, with 55.5% of online shoppers having broadband at home in 2007, up from 30% in 2006.

Malcolm Pinkerton, senior retail analyst at Verdict Research and author of the report, said, "As the cost of broadband falls, consumers become accustomed to internet shopping and retailers continue to enhance their online propositions, the channel will find itself extremely well-placed to capitalise on the falling consumer confidence and lower levels of disposable income currently impacting the retail market."

The study also found online shoppers are buying more regularly, making 16.9 transactions every a year, up from 14.2 in 2006.

Over 4,000 online shoppers were surveyed for the report.

Published by: Suzanne Bearne

Published 3rd June, 2008

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