News

Report: U.K. online shopping booming in home and fashion sectors

June 28, 2010

Internet shopping in the home and fashion sectors has been booming according to the new Transactis Home and Fashion Online Retail Index, as total web spend was up by 12 percent last year despite the recession.

The index, which takes in figures from 178 retailers representing 38.5 million customers, showed that the shift to digital came despite an overall 17 percent decline in home shopping in 2009. Transactis figures also show that 47 percent of home shoppers made their purchases online in 2009 — up from 38 percent the year before — and annual web spend per person increased from £351 ($529) to £376 ($567).

However, Transactis is warning retailers against taking these figures as evidence that traditional mail order shopping is dead and that all investments should go into the web channel. Instead, the company suggests that the picture is more complicated as customers in different demographics favor different channels and most shoppers consult a range of media in making purchasing decisions.

"A cursory glance at these figures might give the impression that consumers are abandoning the high street and big books in favor of the internet," said Dylan Jenkins, head of retail and home shopping, Transactis. "However, one need only look at the age and category breakdowns for these figures to realize that it’s not a simple case of online versus offline."

The index, which covers purchases of children’s merchandise, fashion items, home interior products, household goods, gadgets and certain other products bought through catalogues and websites, shows that younger profiles are more active online. The 18 to 24-year-old group displayed the greatest increase in total web spend (up 27 percent), average web spend per person (up 35 percent), average web transactions per person (up 33 percent) and total web transactions (up 25 percent), making it the most active group online.

The largest group of online shoppers is made up of 35 to 44-year-olds who accounted for 29 percent of all web spend in 2009, but 25 to 34-year-olds represent the group with the highest average annual web spend per person at £513 ($773).

The greatest growth in online participation is coming from people aged between 35 and 54. In 2008 52 percent of 35 to 44-year olds and 40 percent of 45 to 54-year olds made online purchases. In 2009 this increased to 66 percent and 52 percent respectively.