UK internet shopping on the rise

Online footwear and lingerie sales grew faster than on the High Street

UK shoppers spent 17 pence in every pound online in the first half of the year, a report has said.

The total internet spend was £26.5bn, up 38% on the same period last year, according to e-commerce group IMRG and consultancy Capgemini.

Rising food and fuel bills and the credit crunch have forced shoppers to seek out bargains away from the high street stores.

Online sales have reached nearly 20% of total retail spending, the report said.

The survey, based on figures from IMRG, Capgemini and the British Retail Consortium, said shopping in cyberspace had become more popular because consumers were being more cautious about their finances.

A sharp rise in living costs, fuelled by energy and food prices, and the rising cost of borrowing have put household budgets under considerable strain.

Convenience has a sharper edge in a world of soaring fuel prices Mike Petevinos, Capgemini UK

The report added that the credit crunch and rising inflation had dented internet sales, compared with 2007.

But web-based shopping continued to outperform the High Street, said James Roper, chief executive at IMRG.

Buoyant underwear

"Clothes and footwear sales were the biggest losers in physical stores in June, with sales either flat or lower than last year despite heavy and widespread discounting.

"Online, they were the big winners," he said.

The report found internet clothing sales rose 32%, lingerie sales rose 37% and footwear was up 38%.

In total, £1.76bn was spent on clothing online in the first six months of 2008, with a record amount spent in March.

Mike Petevinos, head of retail consulting at Capgemini, believes online shops are more resistant to tough trading conditions than bricks-and-mortar stores.

"Convenience has a sharper edge in a world of soaring fuel prices and the ability to research and make more informed choices in a time of heightened price sensitivity is a key advantage of the online channel," he said.