Over 50% of UK online shoppers set to increase ecommerce spend for Christmas 2009

Published 16th January 2009

According to figures released by the IMRG today, e-tailers enjoyed a rise in online Christmas shopping, despite the economic downturn. The figures highlight that, as predicted in the 2008 Logan Tod Online Shopping Index, there was an increase in online shopping equivalent to £653.2 m.

Released today, the 2009 edition of the Index, which reviews and predicts consumers’ attitudes towards online Christmas spend, forecasts that 53% of UK adults intend to increase their online purchasing for Christmas 2009. The research also indicates that consumers will spend more with e-tailers who demonstrate better availability of product, effective search tools and smarter delivery options.

Matthew Tod, Chief Executive at Logan Tod, explains ‘It is encouraging to see how accurate the 2008 Index and predictions have proven, despite such a turbulent year’.

‘With 53% of those surveyed intending to increase online purchases for Christmas’09, online retailers can look to a sustained growth level as consumers continue to adopt the habit of online shopping. The main challenge for online store managers during Christmas 2009 is therefore going to be maintaining average order values in the face of lower prices and greater competition’.

The 2009 Logan Tod Online Shopping Index has highlighted those attributes which lead to an increase in Christmas sales. Retailers who had previously met consumer expectations benefited over the Christmas period, with online being no different. 70% of UK adults cited previous good experience as a key factor in which sites they visited.

Once arrived at an online retailer, consumers listed in order of importance for buying: product availability information (71%), effective search tools (70%) and smarter delivery options (70%). In terms of delivery, the research highlighted that people are happy to wait for delivery if it comes at a discounted price.

The wider use of search engines has been the key to driving traffic to sites. While social media was not a prominent driver this year, it did have a larger effect amongst younger audiences.

The previous Index (2008) predicted that those in the 45 - 54+ age bracket signified the biggest opportunity for online retailers. This demographic has now become even more comfortable with online shopping and they represent the best growth sector as over 60% of respondents from this group indicate they will buy more online this Christmas.

Matthew Tod concludes, ‘Based on the results of the 2009 Logan Tod Online Shopping Index, we can be sure consumers will buy more through the internet, but they are going to be shopping around more than ever before and demand better service. Intelligent retailers will be those who improve the overall customer experience, and who focus on the high growth demographics’.

…ends/

Notes to editor

For full Index, interviews or further comment, please contact:

Leo Kellgren or Gugs Sembi
immediate future Ltd.
0845 408 2031
Leo.Kellgren@immediatefuture.co.uk - gugs.sembi@immediatefuture.co.uk

About Logan Tod & Co

Logan Tod & Co. is an independent digital consultancy, focused on helping companies achieve better results from e-business. The company ensures online activity creates more sales leads, sells more, saves money and improves ROI. The Logan Tod team does this by analysing data, managing the conversion process and developing techniques to maximise the effectiveness and efficiency of a website.

Logan Tod works closely with its clients, ensuring their site development is more business results driven and customer centric. Clients include Focus DIY, Mothercare, Early Learning Centre, HMV, M and M Direct, Kitbag.com and Hawkins Bazaar.
www.logantod.com