The UK’s Office for National Statistics (ONS) reported that between May and June 2008, retail sales volumes fell by 3.9%, the largest monthly drop since records began in 1986.
Yet online sales have been strong. In fact, Internet sales may be rising more rapidly than anticipated because hard-pressed consumers are determined to find value for money. Also, the rocketing cost of fuel means many shoppers are cutting visits to brick-and-mortar stores and turning to the Web instead.
eMarketer expects that UK B2C e-commerce will enjoy growth in the double digits through 2011, before it drops below 10% in 2012 when annual sales will reach £94.2 billion. Online sales will continue to rise steadily and help maintain some buoyancy in the UK B2C market overall during the next two years. But growth in e-commerce will still be dampened to some extent by the dim economic climate, particularly in 2009. Between now and 2012, the average amount spent per online buyer will rise by almost one-third, from £2,183 in 2008 to £2,926 in 2012.
"But the most-important driver of sales growth will be increased spending by existing online buyers, as more goods and services become available and e-commerce becomes an essential activity for many," says Karin von Abrams, senior analyst at eMarketer, whose specialty is the UK market.
"The UK’s army of e-buyers increasingly supports niche retailers online, such as specialist food suppliers and boutique clothing shops," she adds. "Small merchants with a clear value proposition, well-designed Website and reliable service have every chance of building their customer base and capitalizing on the efficiencies of online selling."
