Online Spending 'Continues to Grow'

Almost 20 percent of total spending in the UK is now transacted online through broadband and other internet connections, management consultancy Capgemini and data firm IMRG have claimed.

According to the two firms' latest index, around £26.5 billion was spent in this way from January-June 2008. Across the six months, sales fell in January, peaked in spring and declined again towards the summer - a rise and fall in line with seasonal retail trends. Overall, the results mean that 17p in every pound spent in Britain is done so online.

Nevertheless, the dip in June is slightly sharper than it was in 2007, a drop which could signify that the general economic slowdown is taking its toll on the online shopping market as a whole.

IMRG chief executive James Roper said: "Online shopping growth continues to out-perform the high street, as tight budgets and poor weather keep people at home where they can shop online for bargains."

Mike Petrevinos at Capgemini added: "The online channel continues to grow its share of retail spend thanks to the traditional drivers of convenience and choice, but these drivers appear to be magnified by the current economic environment.

"Convenience has a sharper edge in a world of soaring fuel prices, and the ability to research and make more informed choices in a time of heightened price sensitivity is a key advantage of the online channel."