Online retail sales to expand 6% a year
I cam across this article which shows business that the way forward is online, its amazing how fast the online market and sales are growing..
Financial Times, Monday March 2nd, 2009
UK online sales will buck the downward trend over the next six years and continue to expand at a rate of 6 per cent a year, according to new research from Forrester, the e-commerce consultancy.
Forrester Research, which today releases forecasts on the future of online retail in the UK, France and Germany, said that while overall economic conditions were deteriorating, online retailers would continue to benefit from a steady migration.
“The recession will hit online sales less hard than other channels as people shop online to find better prices and save on fuel,” Forrester says.
It expects UK online sales for retail and travel to total just over £37bn in 2009, and rise to £56bn by 2014.
Forrester added that while books, DVDs and leisure travel were the most common online purchases in the UK in 2008, over the past year, fashion was the fastest-growing area of online retail.
This is borne out by strong sales figures from retailers such as Asos. The online fashion retailer, which in January reported an 118 per cent year-on-year rise in sales over the nine weeks to January 16, said it was on track to meet expectations for full year profits of about £13.8m, up from £7.3m last year.
Forrester’s research also showed that UK consumers outspent their European counterparts.
The consultancy also expects that increasing demand and greater promotion by merchants will drive the number of online shoppers in the UK up from 30m in 2009 to 37m in 2014.