Contact: Katie Broome
Deloitte
Public Relations
+ 44 (0) 207 303 6359
- More than half of UK consumers will buy online this Christmas
- 18% of retailers do not think the internet is important to them
- 45-55 age group are most likely to use the internet to buy most of their gifts
- Consumers in the North West will be using the internet the most this year
- High Street store websites are the most popular for Christmas shopping
Over the last seven years attitudes towards online shopping have shifted dramatically. This year more than half of UK consumers will shop online in the comfort in their own homes rather than battling the crowds on the high street. According to Deloitte, the tills are set to ring loudly for virtual stores. The business advisory firm predicts online spend will hit £150m a day in the run up to Christmas this year.
Internet shopping - the consumer trends
High street stores’ websites are the most popular amongst those using the internet for their Christmas shopping (60%) and this is reflected across all regions, except the South West, where supermarket websites are most popular.
Men are more likely to use the internet (8%) than women (5%) for their gift shopping. Interestingly the most prolific users of the internet to buy most of their gifts will be the 45-54 age range while only 7% of 15-44 year olds are planning to do so. It is possible that the traditional handwritten list for Santa is being replaced by emails to relatives with hyperlinks to gift items at online retailers.
Women are more likely to use supermarket (54%) and high street store websites (62%) than men, where as men will use manufacturers’ sites more often (48%). This is potentially bad news for “pure play” online retailers. In the wake of the recent focus on so called “dual pricing” for online trading, it could be seen as a further boost for established multi-channel retailers.
Looking back - the trends
Back in 2001 and 2002 the majority of consumers used the Internet for convenience. Up to 2004, there is an increase in the number of consumers who used the Internet to save time, but this dipped in 2005. Over the last four years, the number of consumers who believe there are better quality goods and services available online has tailed off.
Internet shopping doubles
As speculation over the value of online sales over Christmas gathers pace, Deloitte’s Retail Survey shows the Internet is gaining ground on the high street. According to the research 6% of consumers will use the internet for the bulk of their Christmas gift shopping, a 50% increase, up from 4% in 2004. Although more and more consumers are shopping online surprisingly almost one fifth of retailers (18%) surveyed do not believe the internet is an important channel to market.
A word of warning
Despite the huge opportunity for growth in online shopping, there are pitfalls consumers should be aware of. Richard Lloyd-Owen, partner at Deloitte said:
“This year some consumers may fall victim to companies either losing or failing to deliver the correct orders. When you buy online it’s often not clear who you can speak to when something goes wrong and consumers like to complain face-to-face. For high value items consumers should check the details of their order and print off a copy of the order confirmation for back up.”
Making the most of the Internet
According to Deloitte, boosting sales online means you need to think like a consumer. Dave Tansley, partner in consulting said:
“Most people use search engines like Google to track down the product or gift they want. Smart online stores should secure high rankings in the search engine results thrown up to increase volume of consumers attracted to their site.”
Seven years of the Internet for Christmas gift shopping
| Year |
Consumer use of internet for purchasing gifts |
| 2005 |
51% |
| 2004 |
32% |
| 2003 |
29% |
| 2002 |
22% |
| 2001 |
12% |
| 2000 |
11% |
| 1999 |
8% |
| 1998 |
2% | Reasons for using the Internet
| Year |
2001 |
2002 |
2003 |
2004 |
2005 |
| Better quality goods/ services |
4% |
4% |
3% |
3% |
2% |
| Easy to return goods |
0% |
5% |
0% |
3% |
2% |
| Easy to get credit |
0% |
3% |
2% |
0% |
0% |
| Good customer service |
2% |
7% |
0% |
1% |
2% |
| Convenient |
35% |
19% |
- |
- |
- |
| Quick delivery to home |
14% |
15% |
11% |
11% |
10% |
| Browse for products/ services without hassle |
15% |
17% |
16% |
16% |
12% |
| Saves time |
20% |
16% |
27% |
22% |
30% |
| Saves money |
- |
11% |
19% |
23% |
20% |
| Prefer the online shopping experience |
- |
- |
2% |
3% |
3% |
| Other |
11% |
3% |
12% |
10% |
14% |
| Don't know |
0% |
0% |
8% |
9% |
5% |
Ends
About this survey
The survey findings were based on consumer data obtained by market research undertaken by NOP World on behalf of Deloitte. 1000 adults aged 15+ were interviewed the respondents were selected according to a quota sample designed to be representative of all adults in Great Britain. Replies were also received from questionnaires sent out to over 280 of the United Kingdom’s retailers. The retailers were from a cross-section of the industry.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms and their respective subsidiaries and affiliates. As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other’s acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names “Deloitte,” “Deloitte & Touche,” “Deloitte Touche Tohmatsu,” or other related names. Services are provided by the member firms or their subsidiaries or affiliates and not by the Deloitte Touche Tohmatsu Verein.
Deloitte & Touche USA LLP is the U.S. member firm of Deloitte Touche Tohmatsu. In the U.S., services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Tax LLP, and their subsidiaries), and not by Deloitte & Touche USA LLP.
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