A Happy Christmas for e-tailers

Latest stats from Retail Decisions show Christmas Day and Boxing Day online sales have mushroomed, with a rosy festive period to come in 2010

Click of success: Christmas Day sales were up 29 per cent in 2009

Online sales rocketed over the 2009 Christmas period, according to the latest figures from Retail Decisions for IMRG.

Christmas Day sales were up 29 per cent to £132m compared to 2008 and Boxing Day drew the biggest crowd with £281m in sales.

The figures are supported by research from eDigitalResearch, which found that 75 per cent of its respondents went online on Christmas Day or Boxing Day, with 15 per cent placing an order online on Christmas Day and 23 per cent doing so on Boxing Day.

David Smith, director of operations at IMRG, said: “It appears that this Christmas we saw internet activity becoming part of most people’s routine, whether emailing friends, catching up on social network sites or surfing for bargains.

“Online retailers were able to benefit from this changing consumer behaviour by achieving record sales volumes with many sales and offers starting on Christmas Eve.”

The adverse weather in the run-up to Christmas did not deter shoppers from placing orders either, with the majority of deliveries arriving on time. This has led to predictions that 41.3 per cent of people expect to spend more online for Christmas 2010 due to a positive experience last year.

Chris Russell, director at eDigitalResearch, added: “What differentiated this year from last was the fact that retailers offered much later order dates for Christmas deliveries. While last year many multi-channel retailers were still promoting click and collect, this year there was a significant increase in the number of sites that were using courier services to ensure that consumers could still place an order on 23 December for delivery on Christmas Eve.

“People are now increasingly aware when the sales will be starting and so they use the internet to their advantage, identifying and searching out a bargain,” Russell added. “Our research shows that 62 per cent of respondents were online on Christmas and Boxing Day searching for bargains. What’s really encouraging is the fact that Christmas 2010 looks like it will be even more prosperous for the online retailer.”

Carl Clump, chief executive of Retail Decisions, said that more people were lured online to bag the best bargains.

"Online and high street retailers used every trick in the book as they competed for their share of the shoppers’ budgets,” he said. “With slashed prices and ever-earlier sales promotions, UK consumers no longer need to wait for the formalities of Christmas to be over before seeking out the best bargains.

“According to our live estimates, consumers went online early on Boxing Day to pick up the best bargains, with sales up an estimated 94 per cent by midday. However, sales slowed later in the day,” he said.

“Online stores such as Comet, B&Q and John Lewis experienced early spending as internet sales were posted on Christmas Eve. In advance of the Boxing Day sales on the high street, consumers were lured online by special deals on the most popular products and the last opportunity to take advantage of VAT at 15 per cent. On Christmas Eve, a day that is traditionally quiet online, sales rose by an estimated 68 per cent to £181m."