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Online UK Retail Surges While High Street Revenues Fall

With the UK's retail sector being hit hard by the ongoing recessionary trend, online retailing seems to be the saviour that would make up for the losses in trade in the high street stores, according to a recent study.

A new study commissioned by the online payment system PayPal estimated that spending over the web in the UK seems poised to double to £21.3 billion, from just under current £9 billion, by the end of 2011.

Presenting a gloomy picture for the physical stores ahead, the study, which was carried out by the market research firm Experian, suggested that sales in physical stores would notably plunge by up to £8.3 billion by the aforementioned period.

Touting the contribution of online sales in the contemporary retail sector, the managing director for PayPal UK Carl Scheible argued that the significance of online retail “can no longer be dismissed as a sideshow”.

“Online's phenomenal growth is not only forecast to deliver sales of as much as £21.3bn by 2011, but a £12.3bn increase will also ensure that the entire UK retail sector is growing again by the end of 2011”, he added. The study further predicated total retail sector to grow by 0.2 percent from 2008 to 2011.

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Our Comments

Amidst the doom and gloom this could be the good news many have been waiting. Or is it? People may actually be deserting high street stores and prefer to shop online because prices are generally cheaper and take the stress out of the buying process.

Related Links

Internet to rescue UK retail from recession -study (opens in new tab)

(Guardian)

'Growth surge' for UK's online retail sector (opens in new tab)

(GlobalGold)

Online spending set to hit £21bn as shop sales shrink (opens in new tab)

(Scotsman)

Online sales set to double within two years (opens in new tab)

(Telegraph)

Consumers to 'double' online spending (opens in new tab)

(CompareAndSave)

Online sales could rescue retail (opens in new tab)

(The Retail Bulletin)

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.