With VAT set to rise to 20% in 2011, the retail sector will welcome the news that online sales jumped by 22% in May, compared to 2009 levels.
The online market has become a key sector for businesses, in part due to the financial limitations imposed by the recession. Companies have found marketing and selling their products online to be a very cost effective way of generating revenue and attracting customers, with the latest figures showing that shoppers spent £4.5bn online during May alone.
The research, conducted by the International Media Retail Group (IMRG) found that companies who utilised a range of sales channels had the most success. For example, retailers with both physical stores and online facilities saw year-on-year sales rise by 28%, compared with a rise of just 1% for online-only retailers. (more…)