Sales are booming, but unfortunately for the small businesses on the high street the boom is being seen by online retailers.  A new report from the IMRG Capgemini e-Retail Sales Index indicate that online sales have shot up by 16 per cent when compared with online retail sales from 2007.

The chief executive of IMRG, James Roper, is taken aback by the results, which come as quite interesting news through the economic downturn.  “While we would naturally expect to see a monthly increase in online sales during this time of the year, it is perhaps surprising that we are continuing to see yearly growth during these otherwise difficult times for retailers,” says Roper.

The report also showed that sales in alcohol grew by 53 per cent while accessories sales boomed by a huge 108 per cent in November compared with October.  Overall, online sales have gone up by 26 per cent compared with October – a huge and unexpected growth.

As the country is experiencing a credit crunch, shoppers are trying to find any way to save the pennies this Christmas and it appears as though Internet shopping is providing the best deals around the country.

Head of consulting for retail at Capgemini UK, Mike Petevinos, claims that shoppers are enjoying the ease of browsing through items before purchasing.  “The Christmas spirit is with us, but it seems clear that shoppers are being more considered than ever in making their generosity fit their budgets. The current climate is causing consumers to turn to the internet to help them make more informed value decisions and purchases,” Petevinos said.

Petevinos went on to explain that, “what’s surprising is the year-on-year growth despite the slowdown.  It shows online shopping is more resilient than the high street in a recession.”

However, high street businesses are not enjoying the Christmas boom in quite the same light.  Total retail sales for the country saw a drop of 0.4 per cent in November and the fall over November and October is the first time the country has seen a consecutive drop in sales over two months since 1995.

Operations director for IMRG, David Smith, claims that the Internet is clearly the place to be selling this Christmas.  “Undoubtedly, the overall retail cake has shrunk and the internet is now getting a slightly bigger piece of the cake. What we are seeing is that the internet is really coming of age for the consumer.”

Smith went on to say, “I am amazed that Gap, for example, does not yet have a transactional website. It must be hurting them.”

Petevinos even went as far as to claim that Internet shopping could actually make up half of all retail purchases within the next five years, and if figure such as the ones discovered by IMRG continue to be stable, then Petevinos’ prophecy may not be too far from reality.  Perhaps it is time for small businesses around the country to begin exploring Internet sales or face even more economic difficulty.

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