Online retail to offset high street woes
Online shopping could give the UK’s economy the boost it needs to climb out of recession, according to a new report.
PayPal UK’s Online Retail Report estimates that the amount Brits spend online is set to double by the end of 2011, from £8.9 billion per year to £21.3 billion.
During 2011, consumers will spend an average of £430 each buying goods and services online, a 137% increase compared to current online spending.
This phenomenal growth will offset a 1.4% decline in high street sales during the same period, causing retail sales to grow 0.2% overall.
Online sales “can no longer be dismissed as a sideshow,” said Carl Scheible, managing director of PayPal UK.
Almost a quarter of UK adults believe online shopping will become the norm, taking the place of high street shopping, PayPal found.
“Online shops have already seen phenomenal growth and by the end of 2011, when the recession is expected to be over, we’ll be spending at least one in every 14 pounds online,” said Scheible.
He added that retailers looking to get ahead of competition by offering goods online must offer a “fantastic service”.
“Customers want good value, simplicity and security when they decide where to spend their money online,” Scheible concluded.