Online spending in the U.K. is set to increase from $14.6 billion to as much as $34.9 billion in annual sales by the end of 2011, according to a new report by PayPal.
This 137 percent growth in online spending means consumers in 2011 will spend the equivalent of about $705 for every U.K. adult – more than doubling the current annual online spending.
The PayPal report, conducted by Experian, estimates that 2011 will offer the first signs the U.K. retailing has recovered from the recession. Online shopping is forecast to see its strongest year ever in 2011, and offline sales are also predicted to pick up again. The report indicates that in the 18 months up to the end of 2010, online shopping is the only area of retailing likely to record sales growth.
Carl Olav Scheible
Nearly 4 in 10 online shoppers (8.7 million) now believe that it is easier for them to budget by purchasing items online instead of offline, while 47 percent (10.8 million) believe their money goes further online. In addition, seven in ten consumers (33.6 million) say they compile as much information as possible before making a purchase, and 62 percent of online shoppers (14.2 million) believe the best deal are available only online.
“As we all try to make our budgets work harder during the recession it is hardly surprising many of us have headed online to seek a better deal,” said Carl Scheible, Managing Director of PayPal U.K.
“In fact almost nine million of us now shop online at least once a week. Online shops have already seen phenomenal growth and by the end of 2011, when the recession is expected to be over, we’ll be spending at least one in every 14 pounds online.”
