Massive growth predictions for online retail stores in 2007
Â£12 billion growth predicted for online retail stores in 2007
Last year, online sales amounted to just over 30 billion pounds and the leading body for global e-retailing, IMRG, are predicting a further 40% growth in online sales for 2007, to Â£42 billion.
IMRG also predicts that Christmas sales will hit the Â£10 billion mark this year, which is an increase of over 30% on the 2006 Christmas online retailing figures. Personally, I feel that this is a conservative prediction, as the convenience of online shopping, home delivery and the savings that can be made online, could see e-retailers cashing in to the tune of Â£12 billion in Christmas 2007.
Over the 2006 Christmas shopping period, the most successful online retailer in the UK was Argos, with a 12% share of all Christmas gift online traffic. The Amazon stores came second with a 10% share, followed by Tesco and Play.com. Who will win the online retail war in 2007? Unless another big player decides to get involved, I predict Argos will again win, although figures suggest that Play.com saw some massive increases in traffic this year and could compete with Amazon for second place, if the decide to invest in some TV advertising.