E-commerce in the UK soars by 20% by Craig Nicholson

The importance of gearing managed search engine marketing strategies towards e-commerce sites has been highlighted by new figures showing UK consumers are increasingly relying on the web to do their shopping.

Online sales growth has beaten predictions to increase by nearly a fifth over the last year, according to the latest IMRG/Capgemini e-Retail Sales index. Some £31.5 billion has been spent online in the first six months of the year, up 19 per cent compared to the same period in 2010. The figures are one per cent better than was forecast January.

It is thought that the struggling economy and high street has driven shoppers online for better deals. In addition, a hot April meant shoppers turned to the web early to add to their wardrobes, while summer rain has increased the appeal of indoor shopping.

The royal wedding is also thought to have encouraged Brits to get into the party spirit by buying lots of alcohol online.

Figures for June itself are just as impressive, with a total of £5.3 billion spent online, 21 per cent more than the same month last year. The contrast with the high street could not be starker, with traditional shops reporting a like-for-like drop of 0.6 per cent on the same period last year.

Chris Webster, head of retail consulting and technology at Capgemini, said a 21 per cent year-on-year increase in June is consistent with what has been happening all year.

"Bank holidays, soggy weekends and major sporting events encourage us to go online for our shopping  it's quick, it's convenient and we can do it 365 days a year," he added.

David Smith, chief marketing and communications officer at IMRG, said online retailers are bucking the high street trend and business is "really booming". He suggested the increase in internet sales is partly due to traditional retailers making good use of website promotion to attract customers. He said: "This growth has probably been influenced by the huge sales being put on by high street retailers, which would have to be mirrored across their e-commerce sites too."