Online sales rise to an all-time high of £130bn

Domino's Pizza has hit web sales of £1m per week

UK web sales rose by 29 per cent to £130bn last year, according to the latest figures from the Office for National Statistics.

The report, published last week, shows significant increases in all kinds of online transactions, including business to consumer and business to business:

* The web handled 6.5 per cent of the total value of all sales by non-financial sector firms.

* More than a quarter (27 per cent) of the value of all purchases made by non-financial sector firms were made online.

* Web sales made up 37 per cent of total electronic transactions, up from 33 per cent in 2005.

* More than half (52 per cent) of businesses interacted with public authorities, such as government departments, over the internet.

Domino’s Pizza is one company making significant progress.

Weekly web orders hit an all-time high of £1m at the end of last month, after the firm decided to focus on its e-commerce channel. Fifteen per cent of all orders are now made online, up from 10 per cent 18 months ago, and it is predicted that growth will continue at a similar rate.

“Customers spend about 20 per cent more if they order online than if they do it over the phone because they are more relaxed,” said Domino’s IT director Jane Kimberlin.

Broadband in people’s homes has been central to Domino’s £1m weekly record.

“Using the internet is a lifestyle choice and ordering online is faster than doing it over the phone,” said Kimberlin.

James Roper, chief executive of the Interactive Media in Retail Group, said: “There are one billion people using the internet now and the UK leads the world in internet commerce ­ certainly in the area of online shopping.”