Seven of the 100 most profitable retail chains in the UK account for 50% of the spending on web site infrastructure and development, according to a new survey by the trade association Interactive Media in Retail Group. The 100 most profitable High Street retailers, in British parlance, spend £100 million per year on web site development.
40 of the 100 have spent virtually nothing on web sites and the balance “have 'ticked the Internet box' with online brochures that generally add little value,” the IMRG survey report says.
At the same time, British consumers are gearing up for online shopping, the IMRG says. Five million of 13 million UK Internet households (out of 24.5 million total) have broadband access to the Internet, a doubling in the past year. The average annual investment to be online per household, including equipment and paying for access, is £230, the IMRG reports.
“Many retailers still don't see why they should bother investing in online shopping when they can cream off easy profits or just ignore the sector altogether,” says IMRG chief executive James Roper. “The obvious reason is that a large and growing number of their customers are going online to shop and expect them to be there with appropriate services. Online sales are growing by 40% per annum, six times faster than the High Street, and if retailers don't supply what customers' want, online, competitors are just a click away.”
The IMRG reports that British shoppers spend over £1 billion online each month, with that figure expected to rise to £2 billion in November as Christmas approaches.
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