Online shopping takes one in f ive pounds spent

Proportion of purchases made on the internet doubles in five years as Britons shun high street

NEARLY 20 per cent of retail sales are now made online, official figures show as fears grow over the declining high street. Data from the Office for National Statistics (ONS) indicate online sales rose by 15.3 per cent over the past year and make up a record high of 18.2 per cent of all retail sales. This has doubled since 2013 when one pound in every 10 was spent online.

In particular shoppers are avoiding “dusty old department stores” and shopping on their computers and phones instead, experts said. They reported a rise in online purchases of more than a third (35 per cent) in the year to July.

It comes after House of Fraser fell into financial difficulties and was bought by Mike Ashley, the Sports Direct owner, who has pledged to turn it into the “Harrods of the high street”. Meanwhile, Homebase, the DIY chain, has announced it is to close 42 stores to save money. Around three shops are closing on high streets every day, as independent retailers struggle with soaring business rates, online competition and a fall in trade.

However, retail sales grew faster than expected in July when sunshine and the World Cup boosted food sales and shoppers took advantage of online sales and prolonged discounts on fashion. Sales volumes rose by 0.7 per cent on the month before to recover from June’s decrease of 0.5 per cent, and were 3.5 per cent higher than the same time last year, the ONS said.

The ONS said feedback from nonstore retailers suggested that online promotions further encouraged sales, while non-food stores reported a fall in footfall in July 2018.

Rhian Murphy, a senior ONS statistician, said: “Many consumers stayed away from some high street stores in July, but online sales were very strong, supported by several retailers launching promotions. Food sales remained robust as people continued to enjoy the World Cup and the sunshine.”

Laith Khalaf, a senior analyst at Hargreaves Lansdown, said: “There’s really only one winner in the battle between clicks and bricks at the moment, with online sales driving retail growth onwards and upwards.

“Even the dusty old department stores are belatedly getting in on the act and have seen a huge jump in the proportion of their sales coming from online purchases.

“Internet shopping is clearly extremely popular with consumers because of its convenience, though it does take a toll on the high street.

“Even if more traditional stores are switching to the online channel, that means they need less physical space to sell stuff from.

"That spells more store closures, which clearly does nothing to attract people to the high street and is likely to contribute to declining footfall.”