Online Sales Soar During Christmas Period

Strategic Insights -

Shoppers seemed to have defied doomsayers predictions, splurging more than expected over the Christmas period, with online sales soaring to record highs. The high street also showed signs of resilience, with many retailers reporting a strong end to the trading period. Industry insiders say this trend is a sign of the increasing shift towards online shopping, with 25 million people now buying online.

Key Takeaways:

  • Online sales in the UK during the Christmas period are expected to have reached £7.5bn, a 50% increase from the previous year.
  • Amazon.com reported a record 4m items ordered on December 11, while Tesco.com saw a 30% increase in online sales in the four weeks leading up to Christmas, with 1.3m shoppers buying food and presents online.
  • John Lewis saw its online sales soar 60% in December, while its sales on December 27 totalled £18.3m, a 10% increase from the previous year.
  • The IMRG, the e-retail body, says online shopping now represents 10% of total retail sales in the UK, compared to just 0.5% in 2000.
  • Overall online sales in the UK have increased by 40% since 2006, making it one of the strongest Christmas seasons in recent years.
  • The high street benefited from post-Christmas sales, with December 27 being the busiest sales shopping day in four years.
  • Industry experts believe that the premium end of the high street will perform well, while the middle market may struggle due to increased competition from online retailers.
  • Retailers such as Marks & Spencer, House of Fraser, and Liberty reported strong sales, while HMV and Woolworths issued profit warnings at the beginning of December.
  • Online competition is expected to continue to rise in 2007, with many retailers reassuring investors that they are ready to compete.

Statistics:

  • Expected online sales in the UK during the Christmas period: £7.5bn (50% increase from 2005)
  • Number of online items ordered on Amazon.com on December 11: 4m (record high)
  • Increase in online sales at Tesco.com in the four weeks leading up to Christmas: 30%
  • Sales total at John Lewis on December 27: £18.3m (10% increase from 2005)
  • Percentage of total retail sales now accounted for by online shopping: 10%
  • Increase in online sales since 2006: 40%
  • Increase in the number of consumers shopping on December 27: 3.7% (busiest sales shopping day in four years)

Sources:

  • IMRG: "Online sales soar to record highs during Christmas period"
  • John Lewis: "Online sales soar 60% in December"
  • Tesco.com: "Tesco.com breaks all records with 1.3m shoppers buying food and presents online"
  • Amazon.com: "Amazon.com has its best holiday season, with more than 4m items worldwide ordered on December 11"
  • British Retail Consortium: "Indications are that things are getting better than the doom and gloom of early December"
  • Seymour Pierce: "Premium end of the high street set to do well in 2007"
  • Envision Retail: "Middle England is changing and becoming more sophisticated as to where and how it shops"