Credit crunch doesn't deter online shoppers

A new consumer survey has found that, although UK shoppers are feeling the effects of the credit crunch and reigning in the spending on the High Street, they continue to shop online.

Over half (53 per cent) of 3,000 consumers surveyed by researcher OnePoll said they felt financially worse off compared to this time last year, leading a further 51 per cent to say they are spending less overall this year. By contrast, only 19 per cent said they felt better off.

Despite this, over 32 per cent said they would shop more online this year compared to the last. Key reasons cited included the 24-hour availability of online shopping (33 per cent), ease of price comparison (31 per cent) and online navigation (30 per cent).

The research also saw a decline in disposable income is impacting on consumer spending, with customers citing non-essential items such as clothes (49 per cent), CDs and DVDs (37 per cent) and books (29 per cent) as areas for cutbacks. Meanwhile spending on essential items such as groceries, fuel and toiletries remains stable.

Sarah Kellett, retail industry consultant at Fujitsu Services, the survey's sponsor said the results of the research should send a warning to High Street retailers.

"The credit crunch will undoubtedly lead to a decline in consumers' disposable income; this means retailers will have to compete harder for shopper pounds. Online shopping appears to be escaping relatively unscathed from the slowdown despite the fact that the goods people tend to buy more online are the ones shoppers are cutting back on, for example CDs, DVDs and books," she said. "High-street retailers need to address customer demands for convenience, range and overall shopping experience if they are to fit this new world of retailing."

Kellett added that retailers should be investing in in-store technologies that improve the customer shopping experience to draw consumers into their stores at the same time. Self-service checkouts, handheld payment devices and queue management systems would address consumer demands for convenience, while kiosks and PDAs can offer better product information and customer service.

"A truly multichannel approach that offers service choice and personalisation must surely be the way forward for the successful retailers of tomorrow," she said.

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