Industry news

Online shopping 'to boom'

Spending on online retail websites has been predicted to grow by nearly a third, according to a new study.

A report by Verdict Research has revealed that despite falling sales on the UK's high streets online shopping will prosper this year.

The study states that the 32 per cent growth is because internet shoppers can find a bargain online due to competitive prices that are a result of lower costs.

Online retailing was estimated to be worth £19.5 billion annually, according to the researcher.

It predicts that online sales will be worth £44.5 billion by 2012, contributing to 13.6 per cent of overall spending.

Neil Saunders, director of consulting at Verdict, said: "Internet retailing seems to be laughing in the face of the economic slowdown.

"While more muted consumers' sentiment may have a slight downward impact on online growth rates, the internet seems much better placed than physical locations to weather the storm."

The growth in online shopping could drive bandwidth demands, as more people become dependant on online retailers.

Last month, Computer Weekly reported that online spending reached a record high of £4.2 billion in February 2008.