Online retail is growing six times faster than high street sales and on course to reach £37bn a year by 2014, a recent survey has found.
The phenomenal growth is said to be heavily affecting high street retailers who continue to struggle in the aftermath of the recession, with 40,000 shops closing in the last 10 years.
The Webloyalty Online Retail Report by Verdict Research counted smartphones as one of the main reasons for the rapid growth in online sales as customers place orders on their handsets on-the-go. The report predicts that current internet spending will grow by £14bn from 2010 to 2014.
A little over half UK consumers currently use their mobiles during the purchasing process, with this expected to reach 80 percent, according to the research.
Neil Saunders, an analyst at Verdict said: “Shoppers after a better deal will use their mobile to compare and find prices.
“Retailers that survive on the high street will be those that combine their online stores with mobile apps that offer shoppers a better deal using location-based offers.”
He continued, saying that almost half of all Brits own a smartphone – which will be how shoppers locate and compare the best prices in the near future.
High street retailers including Woolworths, Etam, Littlewoods and Zavvi have already moved their businesses online after their stores were closed following dramatic drops in sales and expensive overheads.
Please note the views expressed in this blog are the views of the author, Andre Brown and do not represent the view of Locayta, its employees or its shareholders. For more information about Locayta, visit www.locayta.com