'Online shopping is a real threat, in that it's easy, convenient and often cheap'

Dec 22 2005 By Peter Jackson, The Journal

It's mayhem on the High Street this Christmas. At least it has been in Auckland, New Zealand, where 40 drunken Santas rampaged through the city, stealing from stores and assaulting security guards.

Apparently in protest against the commercialisation of Christmas, some of the Santas threw beer bottles, one tried to climb a cruise ship's mooring rope, another punched a security guard and some of the red-robed, bearded militants even attacked a Christmas tree.

Back here in the UK, on the other hand, things seem to have been relatively quiet. Consumers have been unwilling to part with their cash all year and retailers, who fear that the festive season won't make them feel any less restrained, have already been slashing prices.

John Lewis Group was able to deliver some good news, reporting its busiest ever weekend last week, with sales up 8% on last year to £85.1m.

Its supermarket arm Waitrose also reported a 7% jump rise in like-for-like sales.

Whether we are to see a subdued or a buoyant retail scene this Christmas - and despite John Lewis, the former still looks more likely - I believe we have to treat High Street retail figures with some caution.

The reason is, as I have argued for the past two Christmases, that the internet is becoming an increasingly important player, particularly at this time of year.

It is estimated that more than half of UK consumers will buy online this Christmas, spending as much as £5bn.

It is also estimated that the post will handle 70 million online bought goods - 15 million more than last year.

Already the traditional High Street frenzy seems to have switched to the web, with an influx of online shoppers crashing the Argos website last week.

Admittedly, online shopping still only accounts for a small share of the total retail market - representing only about 3pc of retail sales, but I'll bet that 3pc is largely made up the kind of goods High Street retailers like to shift at Christmas.

Not only that, but when High Street sales have risen by only 0.9%, some of that 3% would be very welcome.

Online shopping is a real threat, in that it's easy, convenient, often cheap - and it entails no risk of being attacked by an enraged, drink-fuelled Santa.