While the majority of our beloved high street retailers have not closed their doors just yet and are still expecting to enjoy a healthy festive period, the real growth in retail is being driven by E-commerce. In October, the number of people in the UK shopping online grew 11.5 per cent from the previous year. Studies conducted by the British Retail Consortium indicate that many shoppers are turning to the web to get their early Christmas shopping done. In the US, a similar study has suggested that many online shoppers will be using their smartphones to do their Christmas shopping. Could this growth be seen as a sign that E-commerce platforms will eventually take over the high street? With businesses turning more and more to the internet as a retail outlet, we explore the facts.

Price comparison site, Kelkoo, suggests that the year-end results for high street sales could end up showing a negative growth of 0.5%. In contrast, E-commerce revenue platforms are expected to see growth of over 17%. Various interfering factors could derail this growth, however. The Great British weather could have a disastrous impact on online retail and its delivery-based shopping. With heavy snow on the roads, some consumers may turn away from E-commerce in an effort to secure their presents before the Christmas Eve rush.

Mobile shopping (or m-commerce) has seen huge boosts this quarter, due in part to the ever-advancing technology in this sector. 56% of consumers with smartphones actually believe that using their phone to shop with will make the experience more enjoyable. Efficiency and speed of completing the arduous shopping tasks with smartphones could be giving shoppers this impression. 1 in 10 searches in retail are now performed from a mobile device. With most high street retailers developing apps and m-commerce platforms, it seems likely that this will remain a huge growth area in retail for the final quarter. Consumers who shop using an iPad are also likely to spend more on Christmas this year. This could either be due to the success of the iPad as a purchase and product comparison platform or simply due to the fact that iPad owners typically have more money.

With mounting pressure on household budgets and consumer confidence remaining low, finding bargains online and shopping at home is becoming an attractive prospect. With the success of E and M commerce platforms, it remains to be seen how these developments will hit the thin ice that high street retailers are built on.  

About the Author

Rachel Barker

Rachel Barker, an accountant who switched to online banking four years ago and has never looked back.