PayPal survey predicts GBP39bn in UK online spending by 2010

Internet Business News, August 21, 2006

INTERNET BUSINESS NEWS-(C)1995-2006 M2 COMMUNICATIONS LTD

A survey by PayPal, a global payments system company and part of eBay, has revealed that spending in the UK is expected to double by 2010, reaching GBP39bn.

PayPal said online shoppers are expected to reach 24.9m in 2010, representing an increase of 71% in comparison to last year's figures. This would mean the UK's online retail market rises to 49% of the adult population.

The grocery sector is likely to take GBP6.25bn, an increase of 235% over last year's figures, with DIY expected to be worth GBP1.2bn, an increase of 172% from last year. Clothing and footwear is expected to take GBP2.27bn, an increase of 160% compared to last year and e-retailing is likely to be worth GBP4.6bn by 2010.

According to PayPal, an extra GBP3.2bn is expected in consumer spending in the UK by 2010, representing predicted online purchases that would not have occurred on the high street. It said 10m households in the UK have now signed up for broadband, with the service representing a main driver for online shopping.

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