The growth of e-commerce in UK

UK consumers helped to increase the number of sales made by safe shopping online last month despite the relatively gloomy picture facing most of the retail market, according to KPMG.

Online sales were up by 12.6 per cent year on year in August, which is the most significant expansion experience within the e-commerce market since April.

In July growth was down to 9.6 per cent, which many saw as relatively sluggish in an industry which is known for its unstoppable increase in sales and market share.

When you factor in high street and food sales, the whole retail world actually saw a 0.6 per cent drop off in growth during August when compared to the same time last year.

Footwear and items for the home took the biggest hits and retailers are only able to part with expensive, larger products via campaigns of discounts and deals, indicating the severity of the current dip in consumer confidence.

KPMG spokesperson, Helen Dickinson, explained that retailer promotions are the main way in which companies are pulling in the punters to high street chains and encouraging consumers to part with their cash via safe shopping online.

Ms Dickinson said that retailers are walking a tightrope, attempting to keep their losses down by getting more people to spend their money, even if they are only investing in cut-price items.

Of course the retailers that are able to perform well in such turbulent times are those which make use of e-commerce tools to keep customers interested and easily accessible.

A study published in recent weeks by IMRG, suggests that the growing number of tablet PC owners is helping to make e-commerce even more attractive, with the suggestion being that smartphone users are actually outdone by those with iPads when it comes to online shopping uptake.

Katie Neilson
08 September 2011