Online shopping set for growth

Online sales are expected to quadruple to £162 billion over the next decade, accounting for 40 per cent of all UK retail sales by 2020, independent price comparison service uSwitch.com has forecast.

The website noted that online sales accounted for only two per cent of total retail spending in 2002, a figure that is predicted to rise to 16 per cent by the end of 2007.

In the run up to Christmas, 27 million Brits are expected to spend a record £14 billion online, making the UK the largest centre for internet retail in Europe.

The reason, reports uSwitch.com, is the immense savings that can be made. In fact, it estimates that UK consumers could save £13 billion a year by shopping online for everyday goods and bills, each household pocketing £500.

Steve Weller, head of communications services at uSwitch.com, noted: "Not only does shopping online save you time and money, but it can actually pay for itself. Each household can save £500 which pays for your annual broadband cost nearly three times over.

"Over the last five years broadband prices have halved [11] while speeds have gone up, making it cheaper and simpler for consumers to log on instead of going out to the shops. Online security has vastly improved so our peace of mind is greater than ever before."

The average household currently spends £980 a year on online goods and services, with holidays, music and films among the most popular purchases.