Royal Mail expects the rollout of ‘superfast broadband’ across the UK to significantly booste-commerce sales, generating an additional £740 million in online sales per year for the country by
2017, as outlined in the company’s latest research.According to the study, online shoppers have already increased their annual spending by £225million since taking up superfast broadband high-speed internet. This equals a 3.1% increase inspending, or £23 a year per user of superfast broadband.
Currently, 73% of the British population has access to superfast broadband, although only afraction of those people have so far signed up to superfast broadband contracts. Further expansionof the high-speed internet could contribute an additional £515 million in online sales when itspenetration level reaches 90-95% of Britons by 2017, as the analysis by the Centre for Economic andBusiness Research has shown. Adding the figure to the £225 million would result in a total salesincrease of £740 million each year.
The impact of the superfast broadband rollout, however, varies significantly across the UK, withonline shoppers in Scotland and Wales having increased their spending the most after they startedusing superfast broadband, by 5.1% and 4.4%, respectively. The study said this can be explained bythe lower population density in those parts of the UK (68 and 148 people per square km, comparedwith 407 for England), which means longer distances from large shopping centres. In contrast, theSouth West of England experienced the lowest average increase of 1.4%.
In terms of regional increases, the Scottish capital Edinburgh reported the strongest growth inonline sales from high-speed internet, with additional spending of £4.4 million, ahead ofBirmingham and Glasgow, the report revealed.
Nick Landon, Managing Director of Royal Mail Parcels, said: “Royal Mail’s study shows that theinvestment in superfast broadband networks is having a positive impact on spending online.Superfast broadband is acting as a catalyst, encouraging people to spend more online and thefurther roll-out of networks across Britain over the coming years can only benefit the onlineretailing market.
To support the online retailing market, Royal Mail said it was continuing to explore ways toimprove its flexibility and provide more options for people to receive items they have orderedonline. “At the end of June, our express parcels business, Parcelforce Worldwide, began deliveringseven days a week when it launched Sunday deliveries,” Landon pointed out. Royal Mail is to pilotSunday afternoon opening at around 100 of its delivery offices across the UK and will also trialSunday parcel deliveries later this summer to addresses within the M25 motorway.
