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Online to outstrip high street sales for first time this Christmas

Gaelle Walker
27 October 2020

Online sales are expected to overtake spending in bricks and mortar stores for the first time this festive season, as shoppers brace for a “COVID Christmas” and spend “a far “bigger slice” of their budgets online, ParcelHero says.

While total spending on Christmas presents and food is expected to remain broadly in line with last year, shoppers are likely to spend £39.41bn online, the home delivery expert predicts. 

In Christmas 2019, Britain’s shoppers spent over £78bn on Christmas presents and food.

ParcelHero head of consumer research, David Jinks MILT, said: “Last Christmas, we spent £25.43bn online and £53.15bn in stores.

“This year, our research shows the situation will be reversed and we’ll spend more online than offline in the first truly digital Christmas.

“In September, sales online sales grew 53% year on year, according to the Office of National Statistics.

“This Christmas, we think they will inch up to 55%. That means online shopping will rise to a record-breaking £39.41bn.

“We don’t think it’s likely we’ll see a massively increased overall spend this Christmas, as people are concerned for their jobs because of the impact of Covid and Brexit, which looms just seven days after Christmas.

“So, assuming Brits spend roughly the same as last year, that means in-store shopping will correspondingly drop considerably to £39.17bn.”

“YouGov says English shoppers spent £381 on presents last Christmas and £159 on food and drink. Over half of this budget will be spent online this year,” Jinks added.

Yesterday M&S announced plans to grow its distribution team by 30% and add a contactless click and collect service to 16 stores ahead of what it expects to be its most digital Christmas ever. 

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