Strong rise in online sales

Internet spending in the UK rose by 38% in the first six months of 2008 compared to the same period a year earlier, according to figures from the Interactive Media Retail Group (IMRG) and consultancy Cap Gemini.

The research found that 17p in every pound was spent online as consumers looked to the internet for bargains to offset rising prices on the high street.

"Clothes and footwear sales were the biggest losers in physical stores in June, with sales either flat or lower than last year despite heavy and widespread discounting," said James Roper, chief executive at IMRG. "But online they were the big winners."

Online sales now accounted for almost 20% of total retail spend, the report added.