PayPal Survey: U.K. Online Sales to Grow 36% by 2012

July 19, 2010

With a 36 percent growth rate predicted for the next 18 months, the online sector is expected to lead retail sales in the U.K. According to the second annual Paypal Online Retail Report, while forecasts for the wider British economy are generally bleak, online retail will double its market share by 2012, reaching £30 billion ($46 billion). The report, undertaken for PayPal by Experian, said e-commerce is set to benefit significantly from improved Internet access and the perception of consumers that shopping online saves money. “Online retail is booming even in the current economic uncertainty because shoppers turn to the Internet when they are trying to be thrifty,” said Carl Scheible, managing director of PayPal U.K. “Two thirds of online shoppers are now convinced their money goes further online compared to less than half who believed it last year, an increase of 8.5 million people. The success of online retail really is the silver lining in the economic crisis.” If the sector grows as the report predicts, by 2012 one in every £10 ($15.29) spent in the U.K. will be spent on the Internet.