Verdict forecasts that by 2012 online share of retail expenditure will almost double to 14%.
This popularity is driven by a consumer perception that the internet is cheaper and an easier forum for comparing prices – 74% of consumers surveyed by Verdict agreed the internet was better for cheaper goods, and 67% agreed that it is better for comparing prices.
However, while Verdict reported that online will diminish the need for physical stores in some retailing sectors, such as music and video, it said that “all is not lost for physical locations”.
“The high street will not die,” said Neil Saunders, consulting director at Verdict Research (Consulting), “internet retailing is certainly set to become more significant, but shopping is a tactile process and for many people it is a leisure activity – online retail does not really deliver on those two things.”
