Online stores expect bumper Christmas in UK

Online shopping is expected to increase by more than 40 percent this Christmas, a major leap from the 20 percent year-on-year growth in 2004, according to Financial Times on Tuesday.

Lower prices, a threat to one of the main competitive advantages of online retailers, are not seen as likely to derail that growth.

It is reported that 24 million shoppers will spend 5 billion pounds (8.6 billion US dollars) online this Christmas, an average of 208 pounds (about 358 US dollars) per person.

Last Christmas, 3.5 billion pounds were spent online.

The expected rise is in sharp contrast to the subdued outlook for high street retail sales.

A threat to online stores' ability to offer the best deals emerged last week when it was revealed that some electronics manufacturers were pricing goods higher for internet retailers than for their high street counterparts.

But for many consumers, price has long ceased to be the primary reason for shopping online.

According to a research by Nielson/NetRatings, a market research group, convenience is the main reason people turn to online shopping, with 30 percent of respondents citing this as their main reason for using the web.

Only 14 percent said price was their key reason for using the internet for purchases.

Source: Xinhua