e-Retail saw very strong growth in 2004 - over six times the level of overall retail spending growth. This was driven by ever higher numbers of shoppers as well as higher average spend, with one in four consumers now shopping online. Retailers who have invested online are now starting to reap rewards, with Tesco, Next, Amazon and Argos all creating meaningful online profits.
Retailers that have invested online are at last beginning to reap rewards: in 2004 online spending has grown by 27.4% to 6.4bn.Despite the growth online still accounts for only 2.4% of total retail spending.Price is the leading factor why shoppers choose to shop online - over the next five years the online market will treble in size to 19.2bn.