Online stores 'pricing out' high street retailers

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Posted in Financial News, 10th December 2004 10:32 GMT

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More consumers are turning to the internet instead of the high street for their Christmas shopping. High street retailers feel the pinch of disappearing footfall, as consumers stay home to take advantage of cheaper online goods, according to a report by CyberSource, an electronic payments firm.

A recent UK government study, conducted by UK Online centres, found that consumers could save up to two thirds off their Christmas shopping by purchasing presents over the internet. The survey priced ten items at £1,128 when purchased on the high street, compared to just £761 online.

Nathan Jackson, managing director at CyberSource, said: “Retailers who boast an online sales channel have a significant advantage over those relying solely on high street stores.”

Online retailers are on the right track when it comes to online security, according to Cybersource. All of them polled by CyberSource use some form of fraud protection system, with manual review proving most popular with 73 per cent of businesses.

Jackson said, “It is essential that retailers provide consumers with a safe and secure shopping environment in order to retain this proposed increase in revenues and to ensure that consumers log out of the festive season smiling and free from fraud, with a new years resolution to revisit the website time and time again.”