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Growing Use of the Internet

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Growing use of the internet

Computer ownership and internet access in UK households has increased significantly over the past five years. In January 2005, 62 per cent of households in Great Britain could access the internet at home compared with only nine per cent in 1998-99 (Office of National Statistics (ONS), Expenditure and food survey, 2005) Broadband connections now account for about 60 per cent of all connections (ONS Survey of Internet Service Providers, 2005). Alongside this growth in household high-speed access to the internet there has been a very rapid growth in internet shopping. In 2004 internet sales made to UK households by UK non-financial sector businesses were valued at £18.1 billion, an increase of 68 per cent on the previous year. This compares with sales of around £3 billion in 2000 (ONS Annual e commerce survey, 2004) Trade comment suggests that rapid growth has continued in 2005 (Interactive Media in Retail Group (IMRG), e-retail, 2005) However a recent Mintel survey paints a more cautious picture suggesting that the rate of growth in internet sales, while continuing, has slowed down and is now largely in line with growth in consumer internet connections (Mintel Internet Quarterly, 2005 ). The same Mintel report notes that the Internet has not transformed the face of retailing to quite the extent predicted five years ago but that it is continuing to establish itself as something more than just a niche retail channel. In this respect, it is obviously of more importance to some sectors than others, something that to a large extent is determined by the relative ease or difficulty with which an online order can be fulfilled. UK internet retail sales in 2005 represented 3.1 per cent of total retail sales of businesses. This share had risen from 0.1 per cent in 1997 (Verdict e-Retail Report, 2005 ) Industry projections suggest that

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