Remember the early days of the internet when people thought shopping online would take over? That day is rapidly approaching.
British internet shops will for the first time this year see their sales surpass those made by the websites of physical stores in the UK.
The prediction, from market researchers Mintel, is for companies which operate exclusively through the internet without having a physical shop – Amazon and Asos are two – to have sales worth £21.8bn this year.
Traditional stores are expected to increase their online sales to £21.5bn. While the amounts are close, the percentage of growth is in favour of the online retailers (an 18% increase as opposed to 11% for the store websites).
Mintel says the stores have been slow to capitalise on the nation’s love affair for online shopping, although there is still scope for them to compete in more savvy ways.
"Currys and Comet were like rabbits in the headlights – they didn’t know what to do," research director Richard Perks said. "But store-based retailers are becoming more confident now."
Another first this year will see online sales of electrical goods eclipse those of fashion. Sales of electronics will jump 18% to £12.6bn, while clothing and footwear is set to grow 14% to £12.4bn.
The third largest sector for online sales is food.
The challenge for online retailers "will be to provide the levels of service that store-based retailers are able to offer”, says Perks.
Overall, online retail sales are set to reach £43.3bn this year, accounting for 12.7% of total expenditure. Mintel estimates that by 2020 almost 20% of shopping will be done on the internet.
