GO
Loading...

Online sales ‘to hit £5 billion’ this Christmas

Peter Phipp | Photographer's Choice | Getty Images

Online shopping is set to rocket this Christmas, according to research by Deloitte published Monday, which stressed that flexible delivery was crucial for retailers looking to cash in on the trend.

The business advisory firm forecast a 19 percent year-on-year rise in online sales in the U.K. for December 2013, to hit a total of £5 billion ($8.1 billion).

(Read more: Microsoft's Xbox One joins the game)

Meanwhile, total Christmas retail sales in the U.K. – both on- and off-line – are expected to increase by 3.5 percent to a total of £40.3 billion during the period.

Deloitte said that clothing stores would receive a boost if the recent cold weather continued and that tablets and games consoles could lift sales at electrical retailers. Homeware and department stores are also expected to do well.

But Deloitte warned that when it comes to online shopping, flexible delivery would be "this year's battlefield" for retailers, with consumer expectations higher than ever.

(Read more: Opinions are spliton retail outlook this holiday season)

"Store collection is now seen as a basic offering and those retailers without this capability will struggle to convert online sales, and lose resulting footfall in-store," Ian Geddes, U.K. head of retail at Deloitte, warned.

He said consumers now expected delivery options to include specified time-slots, same-day collection from local stores and the ability to pick up smaller items from conveniently located lockers.

(Read more: Aftercheap gifts this Christmas? Here's where to go)

Ben Perkins, head of consumer business research at the firm, added that some "innovators" in the market were raising the bar – but should still be cautious.

"Some retailers are able to deliver within 90 minutes, whilst others are offering Sunday deliveries, drive-through pick-up points and even collection from your tube station within four hours of ordering," he said. "However they must balance this against the cost of delivery, and recognise the infrastructure and systems that need to be in place to ensure a reliable and efficient service."

Follow us on Twitter: @CNBCWorld

Featured

Contact Retail

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More