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Christmas On-Line Shopping Booms in 2005

January 2006 Headlines From IMRG Include:

One Million Christmas shoppers at Tesco.com
Online sales soar 45% at Sainsbury's
E-Christmas: Retail's New Order
 
The growth in internet shopping over the 2005 Christmas period continues on from Chrstmas 2004 when Actinic's poll recorded a 60% growth over 2003. Shoppers spent £4.98bn online during the 2005 Christmas period compared with £3.3bn for the same period in 2004, according to e-commerce trade body IMRG.
 
Jo Tucker, IMRG's MD who directs the IMRG Index programme commented: "A step change happened in retailing at Christmas. Consumers have spoken. They want the convenience and choice that online shopping provides. Many just don't have time to trudge the streets hoping goods are in stock. There can no longer be any doubt that the internet is a major part of the retail landscape, and that it will dominate the retail agenda for the next several years"
 
Internet shopping peaked during the week commencing 5th December 2005, when £653 million was spent online. There is a lesson here for newcomers to e-trading - ensure that your website is fully functional well before the Christmas period - leave it too late and you will miss the boat.
 
According to IMRG, 24 million British consumers shopped online in 2005, spending on average £816 each during the year, and £208 in the run up to Christmas. IMRG are predicting that the growth in e-trading will continue unabated during 2006, and should reach £26bn for the calendar year, with shoppers averaging more than £1000 during the year.
 
The 2005 boom comes at a time when traditional high street retailers experienced mixed fortunes over the Christmas period. Supemarkets, such as Tesco (1 million Christmas shoppers) and Sainsbury (up 45% during 2005) and Marks and Spencer dis well, while others, such as Next and HMV did less well. The internet should not be viewed as a threat to the high street. Instead, high street retailers need to embrace this new channel.
 
If your retail business has not yet established a presence on the internet, then why not make 2006 the year to start? But remember, your site needs to be well promoted otherwise no-one will know that you exist. There are lots of ways to inform your bricks and mortar customers about your new website and there are some very effective ways to ensure that internet shoppers find your products.
 

Here is an example of a new website, developed for Christmas 2005, in the outdoor clothing and equipment field, which is showing very steady sales development through a combination of local promotion, email marketing and the use of internet shopping search engines. You can view the January 2006 marketing Newsletter.

 


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