Online sales get Christmas boost, research says

Edigital Research has released consumer insight research that suggests that online sales in Christmas 2009 were up by a quarter as more people surf for bargains.

Data provided by Retail Decisions for Interactive Media in Retail Group (IRMG) has revealed that Christmas Day sales are up 29 per cent on last year to GBP132m, with Boxing Day drawing the biggest crowd with sales of GBP281m.

Edigital Research's survey supported these findings, revealing that 75 per cent of respondents clicking online on Christmas Day or Boxing Day, with 15 per cent placing an order online on Christmas Day and 23 per cent doing so on Boxing Day.

David Smith, director of operations at IMRG, said: 'It appears that this Christmas we saw internet activity becoming part of most people's routine, whether e-mailing friends, catching up on social network sites or surfing for bargains.

'Online retailers were able to benefit from this changing consumer behaviour by achieving record sales volumes with many sales and offers starting on Christmas Eve,' he added.

The threat of adverse weather and Royal Mail strike action did not seem to deter people from placing orders in the last few weeks before Christmas, with the majority of deliveries arriving on time.

As a result of this, 41.2 per cent of people expect to spend more online next Christmas due to a positive online experience.

Chris Russell, director at Edigital Research, added: 'What differentiated this year from last was the fact that retailers offered much later order dates for Christmas deliveries.

'While last year, many multi-channel retailers were still promoting click and collect, this year there was a significant increase in the number of sites that were using courier services to ensure that consumers could still place an order on 23 December for delivery on Christmas Eve,' he said.

Compounding this was the fact that sales were started by the pure players as soon as the last delivery day deadlines were reached.

Russell added: 'People are now increasingly aware when the sales will be starting and so they use the internet to their advantage, identifying and searching out a bargain.

'Our research shows that 62 per cent of respondents were online on Christmas Day and Boxing Day searching for bargains.

'What's really encouraging is the fact that Christmas 2010 looks like it will be even more prosperous for the online retailer,' he said.

Carl Clump, chief executive officer at Retail Decisions, said: Online and high-street retailers used every trick in the book as they competed for their share of the shoppers' budgets.

'With slashed prices and ever-earlier sales promotions, UK consumers no longer need to wait for the formalities of Christmas to be over before seeking out the best bargains.

'According to our live estimates, consumers logged on early on Boxing Day to pick up the best bargains with sales up an estimated 94 per cent by midday.

'However, sales slowed later in the day.

'Online stores such as Comet, B and Q and John Lewis experienced early spending as internet sales were posted on Christmas Eve.

'In advance of Boxing Day sales on the high street, consumers were lured online by special deals on the most popular products and the last opportunity to take advantage of VAT at 15 per cent.

'On Christmas Eve, a day that's traditionally quiet online, sales rose by an estimated 68 per cent to GBP181m,' he added.

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