Online retail grows in January, boosting internet ads

Online retail grows sharply in January, boosting internet advertising Online retail continued its seemingly unstoppable onslaught in January, with UK internet sales topping £4.5 billion for the month.

The figure, revealed in IMRG Capgemini's e-Retail Sales Index, was a year-on-year increase of 75 per cent compared to January 2007, and is the equivalent of £74 spent online for every single person in the UK.

Enjoying the sharpest increase in growth were electrical goods and clothing, which increased by 38 per cent and 32 per cent respectively.

Health and beauty products were up by 18 per cent, while beers, wines and spirits increased by close to ten per cent.

Evidently the internet is very attractive for shoppers in the UK, and the survey draws attention to the potential profits that could be made by those companies with online advertising.

"The Index shows that January sales are as large a phenomenon online as they are on the high street, with the overall online market continuing to show strong growth," said Capgemini UK's vice-president of consumer products and retail, Anthoula Madden.

"The high growth in electricals and clothing suggests that much of this spending is being driven by shoppers treating themselves to the items missing from their Christmas stockings. The continued growth in the online sector underlines the importance to retailers of understanding and serving customers across all channels."

An example of the success enjoyed by online retailers was provided by Dan Mountain of

He said that sales on his website were up by almost 50 per cent in January, "significantly higher" than was expected.

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