UK leads Europe's ecommerce boom

EU retailers will surpass US rivals for first time

Written by Miya Knights

European online sales will overtake those in the US this Christmas for the first time, analysts predict.

Forrester Research says online sales will increase by 44 per cent to €13bn (£9.1bn) in Western Europe over the festive period, compared to €10bn (£7bn) in the US.

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And the UK, where over half of all homes now have online access, will lead the European sales growth accounting for 34 per cent of this spending, generating some 4.2bn euros (£3bn).

'The UK market is hot' said Hellen Omwando, Forrester retail analyst and author of the report. 'It is still the engine of growth in Western Europe, and our figures show UK online shoppers are not just buying more, but more per head.

'There is more supply for more demand, where there is hot competition in the UK market amongst both traditional and pure-play retailers.

'The trend of spending in Western Europe will continue to outstrip the US for the future. It will taper off at some point but this is just the beginning. We are seeing ecommerce in other European countries maturing and more less affluent shoppers joining the traditional early adopters, who tend to be more affluent and tech-savvy.'

While consumers are showing a clear demand for online goods and services, the Royal Mail is warning that a lack of sophisticated infrastructure and delivery channels means retailers could miss out on the multi-million pound shopping opportunities this Christmas.

Research from the organisation shows UK retailers invest on average one per cent on turnover on technology compared to the banking industry for example, which typically spends between two to three per cent.

Richard Roche, head of multi-channel retail at the Royal Mail, which delivers six out of every 10 items ordered online, says retailers must adjust technology spending or run the risk of restricting growth.

'Each retailer needs to extend its channels and route to market, while recognising the strengths of their brands,' Roche said.

'They must bear in mind that online channels have additional fears over security - customers can't physically pick up an item, so they have to reassure them.'

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