Internet proves a turn off for shoppers

The internet has failed to make a significant impact on consumer?s buying habits, with few customers purchasing their products online.

According to a report published by research company Verdict this week, electronic shopping accounted for 0.04 per cent of retail sales.

But retailers? woes were further compounded when the survey predicted that this figure was unlikely to rise further as consumers ignored the presence of the internet.

The findings come at a crucial time for retailers, which have recently been spending time and money setting up home shopping internet sites, with the view of allowing consumers to order products over the Web.

Superstore chain Tempo confirmed this week that it was upgrading its Web site, giving products details, including availability, pricing and specification, to its consumers. It eventually wants to set up an online ordering service (see Page 6).

Verdict stated: ?There is neither the technology nor the demand from the public at present to stimulate growth.

?Developments are still in their early stages as the companies struggle to make delivering profitable and overcome the problems of fulfilment.?

As internet purchases have failed to take off, the total proportion of home-based sales has fallen. Verdict also claimed that mail-order buying through catalogues has fallen sharply, reaching a 10-year low.

The research company said while the mail-order sector saw an improvement last year, its has now fallen to 4.5 per cent of transactions.

Home shopping grew by 3.4 per cent last year.