Royal Mail predicts record breaking online Christmas

Royal Mail expects to deliver a record breaking 100 million items ordered online this Christmas – 30 million more than the same period last year.

The increase in deliveries reflects a predicted online shopping boom this festive season, with an average of GBP4 million being spent across the country every hour in the run up to Christmas. IMRG (Interactive Media in Retail Group) predicts GBP7 billion will be spent online in the ten weeks leading up to Christmas day.

Catherine Campbell, Head of Multi-channel Retail at Royal Mail, said: “Online retail continues to grow at a phenomenal rate and the predicted GBP7 billion spend represents a record 40 per cent increase on the GBP5 billion spent online in the same period in 2005.

“We predict we will deliver a 100 million items ordered online in the run up to Christmas and have been working closely with retailers to ensure we provide a high level of service to their customers and that they have an enjoyable online shopping experience.”

She added: “The traditional catalogue has also seen an evolution with the emergence of the Internet. Retailers are increasingly using catalogues and brochures to encourage people to buy from them online. In fact, three fifths (61 per cent) of UK consumers now consult catalogues before making online purchases*.”

James Roper, Chief Executive of IMRG, said: “More than half the UK population will buy some goods online this Christmas and some will only shop on the internet for their Christmas presents.

“People are shopping more online because they want the convenience, choice and competitive prices that it gives them and many just do not have the time to go to the high street to find the ideal present.”

Music products and downloadable tracks (71 per cent), gifts (69 per cent) and electrical goods (62 per cent) remain the most popular items purchased online, according to Royal Mail research. The study also revealed:

o 45-54 year olds are the biggest online shoppers, having spent an average of GBP724 in the first eight months of this year
o 20 per cent of men have already spent over GBP1,500 this year online compared to ten per cent of women
o Regionally, Scots spend the most online, GBP701 in the first eight months of the year, mainly on gifts

Ends

Issued on behalf of Royal Mail by Marie-Louise Fagan and Joanna Agnew, Cohn & Wolfe, 020 7331 5478/66

Notes to editors:
*Statistics taken from the Royal Mail Home Shopping Research, August 2006. Sample of 4,043 adults aged 18 years +
Data excludes the food and drink category

Royal Mail provides a range of services to support the home shopping market, from warehousing and direct marketing expertise, to delivery to all 27 million addresses across the UK and return services.

ICM interviewed a random sample of 4,043 adults aged 18 +, by telephone across the country between 16th – 27th August 2006. ICM is a member of the British Polling Council and abides by its rules. Further information at www.icmresearch.co.uk