Adding weight to its claim of providing the
UK’s favorite internet consumer retail payments solution, PayPal
increased its market share from 17 percent in 2006 to 21 percent in
2007, a study conducted by recently formed UK industry body the
Payments Council shows.
UK’s favorite internet consumer retail payments solution, PayPal
increased its market share from 17 percent in 2006 to 21 percent in
2007, a study conducted by recently formed UK industry body the
Payments Council shows.
PayPal’s market share increase came in a year
when total online spending in the UK grew by 54 percent compared
with 2006 to £46.6 billion ($48.8 billion), according to
consultancy Capgemini and global electronic retail industry body
the Interactive Media in Retail Group (IMRG).
when total online spending in the UK grew by 54 percent compared
with 2006 to £46.6 billion ($48.8 billion), according to
consultancy Capgemini and global electronic retail industry body
the Interactive Media in Retail Group (IMRG).
PayPal UK now has a customer base of over 20
million online shoppers, said marketing director Mark Hodson who
added that online sales are still “booming”.
million online shoppers, said marketing director Mark Hodson who
added that online sales are still “booming”.
Supporting his optimism, Capgemini and the IMRG
reported that online sales in the UK in the first half of 2008
increased by 38 percent compared with the first half of 2007 to
£26.5 billion.
reported that online sales in the UK in the first half of 2008
increased by 38 percent compared with the first half of 2007 to
£26.5 billion.
This growth increased online spending to 17
pence of every pound spent on retail purchases, up from 15 pence
per pound during the pre-Christmas 2007 shopping season.
pence of every pound spent on retail purchases, up from 15 pence
per pound during the pre-Christmas 2007 shopping season.
“While online retail is not immune to the
current credit crunch, it is showing much greater resilience than
the high street,” said Capgemini UK head of consulting Mike
Petevinos.
current credit crunch, it is showing much greater resilience than
the high street,” said Capgemini UK head of consulting Mike
Petevinos.
“The online channel continues to grow its share
of retail spend thanks to the traditional drivers of convenience
and choice but these drivers appear to be magnified by the current
economic environment.”
of retail spend thanks to the traditional drivers of convenience
and choice but these drivers appear to be magnified by the current
economic environment.”
The trend towards online shopping appears
unstoppable and, predicted Capgemini, will account for between 30
percent and 50 percent of all UK retail sales in the next five
years.
unstoppable and, predicted Capgemini, will account for between 30
percent and 50 percent of all UK retail sales in the next five
years.
“This is because as online reach 20 percent of
all retail sales, retailers experience a tipping point which forces
them to seriously rethink the future viability of their business
model,” explained Petevinos.
all retail sales, retailers experience a tipping point which forces
them to seriously rethink the future viability of their business
model,” explained Petevinos.
“We have seen this happen for books, music,
DVDs and electricals and as the [retail] industry as a whole
reaches this tipping point in 2008, more categories are sure to
follow.”
DVDs and electricals and as the [retail] industry as a whole
reaches this tipping point in 2008, more categories are sure to
follow.”
Highlighting the swing to online shopping IMRG
CEO James Roper pointed out that, despite heavy discounting,
clothing and footwear sales in physical stores in June this year
were either flat or down compared with last year, while online
sales of these items increased by 32 percent and 38 percent,
respectively.
CEO James Roper pointed out that, despite heavy discounting,
clothing and footwear sales in physical stores in June this year
were either flat or down compared with last year, while online
sales of these items increased by 32 percent and 38 percent,
respectively.
Overall the swing to online shopping has the
makings of a major headache for owners and developers of retail
properties.
makings of a major headache for owners and developers of retail
properties.
