Credit crunch hits online sales

 

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By Reuters

Posted on 31 Oct 2008 at 10:58

Britain's online retailers have suffered a monthly traffic fall for the first time since records began three years ago, researchers claim.

Research firm Hitwise claims internet traffic to online retailers fell 0.5% in October compared with the same month in 2007, suggesting the downturn in consumer spending has begun to affect the previously fast-growing online sector.

Although weekly online traffic has declined year-on-year in the past, this was the first time it had fallen across a full month.

"Up until now, online retail has been surviving the economic downturn, but this month's data proves that the sector is not immune," says Hitwise's director of research Robin Goad.

Despite this, supermarkets still appear to be benefiting, with internet traffic to the major grocers up 10% year on year. And soaring demand for second hand goods proved a boost for classified retailers, who enjoyed a 47% jump over the same period.

Hitwise's report warns that worse may be to come, however, as the impact of new shopping centre openings makes it even harder to shift maximum levels of stock.