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Verdict's
Research confirms growth.
A new report, e-Retail 2006, from retail analysts
Verdict Research, part of the Datamonitor Group, reveals
the true strength of the online retail sector. Last year
online retailers accounted for almost half the cash
growth in retail spending, with sales increasing 15
times faster than the retail average. Though online's
share of retail is still small, its meteoric growth is
sending shock waves throughout the wider retail sector
as shoppers of all ages transfer their purchases online. |
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Online shopping surges ahead.
Last year overall retail spending grew by just 1.5%, the
slowest rate of modern times, yet spending online surged
ahead by 28.9%, at over
15 times the pace of all retail.
Indeed rather than slow down, the growth of online
spending actually accelerated from the 27.4% achieved in
2004. This means that of the extra £3.9bn spent by
consumers on retail in 2005 compared with 2004, almost
half (£1.8bn) went to online retailers. |
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Consumer research conducted by Verdict shows that
one in four
UK consumers now purchase goods over the Internet
each year. The online shopper population stood at 14.6m in 2005, a
25.5% increase
on the previous year. Over the past year the number of shoppers with
broadband access has almost tripled to 9.6m and this encouraged more
frequent and widespread online shopping. Intensifying competition among
Internet Service Providers and the introduction of new technology,
coupled with greater availability has encouraged consumers to trade up
from dial-up connections to broadband.
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Silver surfers are the
fastest growing shopper group and
offer online retailers the greatest potential. The number of 55+
Internet users nigh on doubled to 2.7m in 2005 as they begun to
realise the potential of the Internet. The rapid increase in
Internet shopping among this age group is reflected by a 46.7% rise
in spending to £458 per head. Despite these impressive figures,
Verdict believes there is further potential for growth, with just
one in six over 55s currently shopping online, compared to an
average of 29.7% across all age groups.
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The 35-44s remain the
highest spending age group,
accounting for £3 in every £10 spent on the Internet. Spending in
this age group amounted to £2.3bn in 2005, with average expenditure
per head of £675. Indeed the 35-44s account for the largest share of
expenditure in five of the eight online retail sectors. With the
highest online penetration of any age group at present, further
growth in this age group is limited compared to other age groups
where penetration is lower.
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The research shows that
women continue to spend more than men
online, but the gap is narrowing.
The typical female shopper spent £579 in 2005, ahead of the £543
spent by males. This £36 gap indicates that the spending
differential between the genders is closing with average male spend
increasing by 5.2% compared to 1.7% among females over the past
year. Despite this emerging trend females are the most avid online
shoppers. They account for the majority of online spending in
clothing footwear, DIY, food grocery furniture, health beauty and
homewares, while males outspend females in books, music video and
electricals.
FULL REPORT AND
DATA ANALYSIS AVAILABLE AT www.verdict.co.uk
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