Retailers in U.K. encouraged online

Recent figures released by IMRG and Capgemini show that online shopping in the U.K. soared by over 50 percent in 2007, growing its share of the British retail market to its largest ever.

by Helen Leggatt

Retail marketers in the U.K. are being told to get online or be left behind. This comes as IMRG/Capgemini release figures showing that full year sales for 2007 had increased to £46.6 billion, 54 percent up on 2006’s £30.2 billion.

The growth was fuelled by holiday spending when, even on Christmas Day, 4 million online shoppers spent £84 million as major U.K. retailers began their Internet sales.

“Consumer behavior has changed dramatically over the last few years and really is the driving force behind many of the changes in the e-retail landscape,” said James Roper, CEO of IMRG, in an announcement. “If retailers intend to be part of the future retail scene, they need to develop a robust online presence and that is getting harder as the sophistication of channel increases and customers expectations rise”.

Electronics e-tailers fared well with a 60 percent YoY growth in December, as did clothing up 28 percent and beers, wines and spirits up 20 percent.

The British Retail Consortium (BRC) released somewhat lower figures, almost half those reported by IMRG/Capgemini.

"The IMRG figures are always higher because they include a range of things which aren't actually retail spending, like holidays,” said BRC spokesman Krishan Rama. "Obviously Internet spending is growing rapidly but still only represents 6 per cent of retail sales."