0 MP Margaret Hodge encourages Dreamteam Design to educate retailers

Author: EROL Press Office
11th September, 2006

A recent seminar given by Dreamteam Design to Brighton’s independent retailers was backed by DTI Minister, Margaret Hodge, who sent a statement to the company for their event. She wrote:

To: Brighton Lanes Business Network - Ecommerce Event for Brighton Retailers June 06 2006

I am sorry I can’t be with you today but I’m sure you will find the day instructive and worthwhile.

Why is it important that retailers consider trading online? The statistics are quiet startling. The last official figures released by the ONS, for the period between 2003-4, showed that Internet sales rose by 81% to £71.1 billion, having doubled in the previous year. That represents huge growth over the 2 year period within those totals sales to households went up by 68% to £18.1 billion. The most common purchases were travel, accommodation/holidays, videos and DVDs, music and tickets for events.

We know from the British Retail Consortium that in the run up to Christmas some £3 bn was spent by consumers, a 20% increase across the board. But just reflect on the figures published by the Interactive Media in Retail Group since they started tracking Internet sales in April 2000. They claim internet sales have gone up by 1500% compared to an increase in total UK retail sales of 20%. Although still relatively a small proportion of overall retail sales, Internet sales continue to grow and so far look resilient compared to off-line sales. Retailers continue to invest in technology and improve their systems.

The spread of broadband is also accelerating this trend. Research suggests that broadband connectivity increases the amount of online shopping and with 99.8% of the population able to access broadband, the potential for further growth is clear.

These statistics demonstrate the opportunity, but also the threat. While local shops can offer a different retail experience that attracts customers, they cannot ignore the fact that their competitor nowadays might not be in the same street or town, and may not even be in the country. Nor can they ignore that it is increasingly easy for customers to seek out products and services via the Internet. The recent agreement among Ministers on removing barriers to cross-border provision of services adds to that opportunity/threat. But you are well placed to thrive if you embrace the technology and exploit it effectively to meet the needs of your business.

Businesses of all sizes can benefit from this technology, the smallest as well as the largest. You have an opportunity today to learn how to make that happen, to learn from those who have already taking the plunge and to pick up best practice. I urge you to make the most of the opportunity.

I hope you all have an enjoyable and rewarding day, and I look forward to seeing your efforts reflected in a further increase in the volume of sales being achieved online.

Good luck.
Margaret Hodge
Message from Margaret Hodge, Minister of State for Industry and the Regions, Department of Trade and Industry

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