Online Sales Will Hit £5bn This Christmas As Shoppers Embrace Click & Collect

Shoppers will spend £5bn on the internet this Christmas after retailers embraced a proliferation of delivery options.

Online spending in the UK is expected to increase 19 per cent compared to the same time last year, according to new research by company adviser Deloitte.

Ian Geddes, Deloitte's UK head of retailer, said click and collect had grown in importance over the past 12 months - and stressed that those high street retailers who did not include it in their offer were missing out.

He said: 'Consumer's expectations around flexible delivery over the coming festive period are higher than ever before. Store collection is now seen as a basic offering and those retailers without this capability will struggle to convert online sales and lose resulting footfall in-store.'

He said: 'This year the consumer will be challenging retailers' ability to deliver a sofa at home in a specified time-slot, transfer a party dress to their local store for same day collection and drop their Christmas DVDs at a convenient locker.'

Deloitte has calculated spending in the Christmas period will increase 3.5 per cent to £40.3 million. The figures correlate with other forecasts that suggest consumers have been spending less in the run-up to Christmas so they can enjoy the festive period.

Deloitte said 47 per cent of UK shoppers believe boarded up high street stores would be convenient locations for collecting online shopping. It said 36 per cent would like to pick up small packages from lockers or convenience stores near their home or their workplace.

They said innovations such as sub-90 minute deliveries, Sunday services and tube station collection points were all helping individual retailers stay ahead.

'However, [retailers] must balance this against the cost of delivery and recognise the infrastructure and systems that need to be in place to ensure  a reliable and efficient service. Retailers are under pressure to secure sales and customer loyalty but ultimately they need to turn a profit in the process,' said Ben Perkins, head of consumer business research at Deloitte.