Over Half UK Set to Increase ecommerce Spend for Christmas 2009

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Third annual Logan Tod Online Shopping Index reveals increased satisfaction and rising ecommerce uptake from older demographics are driving growth.

According to figures released by the IMRG, e-tailers enjoyed a rise in online Christmas shopping, despite the economic downturn. The figures highlight that, as predicted in the 2008 Logan Tod Online Shopping Index, there was an increase in online shopping equivalent to £653.2 m.

Released today, the 2009 edition of the Index, which reviews and predicts consumers' attitudes towards online Christmas spend, has forecast that UK adults intend to increase online purchases for Christmas 2009. The research also indicates that consumers will spend more with e-tailers who demonstrate better availability of product, effective search tools and smarter delivery options.

Matthew Tod, Chief Executive at Logan Tod, explains 'It is encouraging to see how accurate the 2008 Index and predictions have proven, despite such a turbulent year'.

'With 53% of those surveyed intending to increase online purchases for Christams'09, online retailers can look to see a sustained growth level as consumers continue to adopt the habit of online shopping.'

The main challenge for online store managers during Christmas 2009 is therefore going to be maintaining average order values in the face of lower prices and greater competition'.
The 2009 Logan Tod Online Shopping Index has highlighted which attributes lead to an increase in Christmas sales. Retailers who had previously met consumer expectations benefited over the Christmas period, with online being no different. 70% of UK adults cited previous good experience as a key factor in which sites they visited.

Once arrived at an online retailer, consumers listed in order of importance for conversion: availability of product (71%), effective search tools (70%) and smarter delivery options (70%). In terms of delivery, the research highlighted that people are happy to wait for delivery if it comes at a discounted price.

The wider use of search engines has been the key to driving traffic to sites. While social media was not a prominent driver this year, it did have a larger effect amongst younger audiences.
The previous Index (2008) predicted that those in the 45 - 54+ age bracket signified the biggest opportunity for online retailers. As this demographic has become more comfortable with online shopping, they now represent the best growth sector, with over 60% of respondents from this group indicating they will buy more online this Christmas.

Matthew Tod concludes, 'Based on the results of the 2009 Logan Tod Online Shopping Index, while consumers will buy more through the internet, they are going to be shopping around more than ever before. Intelligent retailers will be those who improve the overall customer experience, and who focus on the high growth demographics'.

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Leo Kellgren
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