Recession drives customers online in search of bargains with the e-tail market set to expand by 13.3% over the course of the year.
A new report from Verdict Research has revealed that total retail growth will contract by 0.6% in 2009 as consumer spending is "ravaged by the effects of the recession", while the online market will expand by 13.3%.

Driven by an increased number of internet shoppers and a greater expenditure per head, online spending should reach £20.9bn this year.

According to Verdict, the major factor behind the web's outperformance of wider retail is its "counter-recessionary characteristics" as a cheaper, m ore convenient way of shopping.

"Those with less money are turning to the internet to search out bargains on branded items like electricals", said Verdict Research senior retail analyst Malcolm Pinkerton.
"Additionally, the more affluent groups, who do still have money to spend, continue to appreciate the internet for its convenience, making the channel doubly resilient to the downturn."

However, Verdict has found that some customers have snubbed the internet in favour of seeking out bargains on the high street.

Mr Pinkerton explained: "There is some evidence that the most financially squeezed are abandoning the internet in favour of cheaper high street shopping at the likes of...Matalan, Poundland and the grocers, particularly in sectors which retail smaller, lower priced items, such as homewares, DIY and clothing."

Verdict predicts that, as the housing market and economy pick up, so consumers will turn to the internet for big-ticket purchases. "As shoppers have become more used to spending online, they are more likely to use this channel for big-ticket items when they are able to buy them again", explained Verdict retail analyst Matthew Piner.

He added: "The credit crunch and subsequent recession are likely to have a long lasting impact on the attitude of consumers towards spending, fostering increased austerity."