Jason Jeffries
20 December 2011
Recent figures from the Office for National Statistics showed that despite a drop in bricks-and-mortar sales for the month of November, the ecommerce industry in the U.K. is continuing to grow. The ONS data showed more U.K. consumers are turning to online stores for items, from holiday gifts to groceries.
The ONS reported average weekly spending online has increased about £200 million in the past year, increasing from £539 million in November 2010 to £787.9 million in November 2011. This boost in ecommerce activity has resulted in online stores accounting for 12.2 percent of all retail sales. The volume of online sales increased as well, up 18.9 percent from November 2010.
As more U.K. shoppers are opting to purchase online, many etailers from other markets are expanding into Britain to offer their products and services to British consumers. According to Screen Daily, Netflix is planning to go international with its service, expanding into the U.K. in early 2012.
The source reported the decision to grow in the U.K. market came after reports of a fast-growing online consumer base and a decline in DVD consumption across the country. There are also a large number of well-capitalised indie distributors who are eager to compete with pay-TV providers by providing films to subscription video-on-demand companies like Netflix.