Online businesses 'profit in crunch'
Jul 28 2008
Rising fuel, food and energy prices are reportedly causing more people to turn to SMEs on the internet for cheaper deals.
According to the IMRG Capgemini e-Retail Sales Index, British shoppers upped the amount they spent online by 38 per cent in the first half of 2008, compared with the same period the previous year.
This means that 17 pence from each UK pound is being spent online.
Speculators from IMRG predict 'smarter' shopping will continue as the credit crunch worsens.
Mike Petevinos, head of consulting for retail at Capgemini UK says that in the next five years, between 30 and 50 per cent of all retail will take place online.
The Times reports that the small businesses which are expected to profit most from the crunch are specialist stores or those offering niche products.
Growing from a small online business to a larger one requires good service, professional packaging and reliable delivery, entrepreneur Alison Wade tells the newspaper.
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