Online sales to triple in five years

Verdict sees biggest boom since dotcom bust

Online sales are growing faster than at any time since dotcom bubble burst in 2001, according to new data.

Verdict Research says online retail spending in 2006 in the UK grew by 33.4 percent to £10.9bn. That growth rate is almost 13 times faster than the retail sector generally, Verdict added.

Online retail accounts for over 30 percent of all UK retail now, and there are no signs that the upward trend is slowing. Verdict expects online sales to nearly triple in value by 2011.

The analyst said that proliferating broadband links and retailer investment are driving the boom, naming Asda, B&Q, Marks & Spencer, Tesco and Woolworths among those that have invested heavily to improve online offerings.

“The internet has become a major retail channel with almost half of revenue coming from food and electrical goods,“ said Nick Gladding, senior retail analyst at Verdict. “The internet also offers food retailers an excellent route to selling non-food items.”

However, some categories are still slower online. “Clothing is slightly behind but has a lot more potential. The less well developed sectors are furniture, where smaller firms don’t have the capacity for transactional sites and people like to see and touch products; as well as health-and-beauty goods and home wares,” Gladding added.