Surge in online Xmas gift buying - 21/12/09

Britons spent 25% more on internet shopping last month compared with October, figures revealed today.

The IMRG Capgemini e-Retail Sales Index showed shoppers spent £5.3 billion online in November, an 11% rise compared with the same time last year.

But although the figures suggest a Christmas gift surge, in general year-on-year growth has slowed this year, according to index analysts.

They said shoppers could have been holding out to the end of the year for bargains because of a tendency in the last two years for retailers to offer seasonal price cuts and promotions in December rather than January.

Christmas falling on a Friday may also mean customers are allowing shorter delivery windows than usual, the index figures suggested.

Mike Petevinos, head of consulting for retail at Capgemini UK, said: "November's results show a solid growth for online retail in the run up to Christmas.

"Given retailers' perceptions that consumers are holding out for November bargains, this would suggest a strong December for online.

"The challenge will be to ensure that value is at the forefront of the Christmas message, with carefully designed promotions becoming the norm across the sector.

"Inspiring confidence in late delivery windows could also become a differentiator for those that have got it right."

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