Online shopping sales hit the 100bn mark

SHOPPERS swapping the High Street for their home computer have spent more than 100 billion since online shopping began 12 years ago, according to new figures.

The research dates to April 1995 when shoppers made their first tentative e-retail purchases of books and CD-ROMS - small beer compared to today’s range of online purchases, covering everything from fridge-freezers to designer clothes.

Research released yesterday by the Interactive Media in Retail Group (IMRG), the industry body which tracks internet sales, shows this year’s UK internet sales are expected to rise to 42 billion compared with the 100 million spent in 1995.

Britons spent 3.465 billion online last month - up 55 per cent on the previous year.

Jo Evans, IMRG marketing director, described the 100 billion total online spend as an “astonishing landmark”.

“It’s been obvious for a couple of decades that a secure, networked consumer marketplace would arrive and be popular, but actually witnessing its profound success and meteoric growth still takes my breath away,” she said.

The figures reveal travel was the largest category of consumer spending accounting for around 7 billion last year, followed by electrical goods at 5 billion. IMRG predicts sales will reach 78 billion, amounting to 20 per cent of all retail sales, by 2010.

James Roper, the chief executive of IMRG, said part of the explanation for this is the “untapped” market arising from the large number of retailers still to go online.

“This is a young industry and retailers are barely beginning to scratch the surface. Research this year found 44 per cent of the UK’s top retailers didn’t have a transaction website,” he said.

“Over 26 million people in the UK are shopping online - they got the message quickly.”

Professor Paul Freathy, of the University of Stirling’s Institute of Retail Studies, said the figures reflected growing computer literacy and changing work patterns.

“Customers are becoming much more confident in dealing with the internet,” he said.

“We are also working increasingly long hours making many of us cash-rich and time-poor. The internet offers us a 24-hour shop without all the hassle of dealing with crowds.”

The UK’s first secure online shopping transaction was a book bought from WHSmith in April 1995, according to IMRG.



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