Retail IT directors will come under pressure to invest
in their corporate websites after a surge ininternet shopping over Christmashelped push total UK online sales up by 75% to £53bn during
2007.
Online retail analyst IMRG will warn in a report this week that
retailers that refuse to sell online risk losing business as
internet shopping heads towards capturing 50% of the UK's
£300bn-a-year retail market by 2018.
The shift to online shopping will put retail IT directors under
pressure to ensure their websites are easy and safe to use, and
that their supply chains can deliver goods on time to the store and
customers, said industry watchers.
"Getting the best from the supply chain is going to be a huge
issue, especially as the internet enables people to leave shopping
until the last minute," said Mike Goldiman, retail analyst at
Pragma Consulting.
Christmas trading figures issued last week showed that the
growth rate of internet sales had outstripped every other sales
channel.
Sainsbury's chief executive Justin King said the supermarket
chain's online operation had grown by more than 40% during the past
quarter alone. "In the week before Christmas we delivered 90,000
orders, up more than 50% on the previous year," he said.
Marks & Spencer boss Stuart Rose said a new
Amazon platform underpinned the firm's aim to take £500m a year
in web sales by 2010.
"Online sales are up 60%, driven by significant improvement in
traffic and conversion levels," he said.
Other large retailers said online selling was fundamental to
their investment plans.
"Online sales and using our websites as an effective
communication tool to customers are now pivotal parts of the
brands' strategies," said Andrew Clarke, IT director at Arcadia,
which owns Top Shop, Dorothy Perkins and Burton.
Harrods IT director David Llamas said outsourcing its online
operation had allowed the retailer to meet rising demand. "This
gives us the scalability and flexibility to cope with expansion,
and our customers the guaranteed level of service they associate
with Harrods," he said.
IMRG's report will say consumers spent nearly £18bn over the
Christmas period, with about £84m spent online on Christmas Day
alone.
● 17% of consumer spend on retail, travel and leisure takes
place online
● Online shopping could take 50% of UK retail market by 2018
● 4.4 million Britons bought goods online on Christmas Day - a
269% increase on the 2006 figure
● Consumers spent a record £53bn online in 2007, up 75% on
2006
Source: IMRG/Capgemini
Marks & Spencer's online experience this Christmas shows the
importance of e-commerce for large retailers:
● Post-Christmas sales up 78% compared with 2006
● Shopper registrations up by 20%
● 400,000 visitors on Christmas Day
● 620,000 visitors on Boxing Day
online retail highlights
M&S shows online growth