Retailers losing millions to online market

Even the largest British retailers are losing millions of pounds worth of sales to online retailers. Research from digital agency Head London and Oxford Economics found the U.K.'s best known brands lost a potential £500 million in sales to online retailers between 2007 and 2010.

The data found Morrisons, the supermarket chain, had the most drastic disparity, losing £314 million in sales, while Dixons could have collected £32.6 million more if its online presence had been enhanced. Other top brands that missed out on significant profits from an e-commerce site include Homebase, losing £9.6 million, Sports Direct and DFS, both down £9.5 million, and Phones 4U, missing out on £17.5 million.

While Tesco was able to add at least £255 million to its sales thanks to a strong online presence, Paul Jervis-Heath, head of design at Head London, said too many British retailers are behind the digital curve.

"They usually have a mobile website, and even an app, but too often these services are not joined up," Jervis-Heath said. "By not giving customers the information they need on the platform of their choice they are less likely to complete purchases."