A new report published by retail analysts Verdict suggests that
the value of on-line grocery retailing is set to grow to £5.7
billion by 2006. This year, grocery will account for half of all
retail on-line sales – £1.2 billion, although this figure is still
only 1.4% of all retail grocery sales. By 2006, Verdict forecasts
that 5.7% of all grocery sales will be channelled through on-line
media – to be worth £5.7 billion. This will be 40% of total retail
on-line sales worth £14.4 billion, accounting for 5.6% of all
retail sales.
A general expansion of internet sales is likely to take place as
the number of consumers buying on-line is expected to rise from the
present figure of 5.9 million to about 14.4 million. If this is to
happen, Verdict says that lingering concerns about security aspects
of on-line sales must be dispelled. The report cites security fears
as the principal deterrent for many potential on-line
consumers.
The report also notes that several of the leading on-line
retailers, including Next, Amazon and Tesco, appear to be suffering
slight losses in internet sales as competition from other well
known brands increases. Verdict suggests that high street retailers
continue to appear better placed in general to attract on-line
shoppers, whereas retailers operating purely via the internet will
find it increasingly difficult to secure a strong client basis.
