Online shopping booms as people search for bargains

Want to get a bargain this Christmas? Go online. This week, Christmas internet shopping is expected to reach its peak, as people buy online while there is still enough time for delivery by the 24th.

Internet shopping would appear to have finally come of age in New Zealand this year, with retailers such as Whitcoulls and The Warehouse offering full online shopping services for the first time.

While e-commerce is still behind the US and Britain, research house Nielsen's Panorama survey shows 1.48 million Kiwis shopped online in the past year, a 10 per cent increase on 2008.

People are also shopping online more frequently, with a 29 per cent increase in the number who made 11 or more purchases in the past year.

The Warehouse launched its online store in June, initially offering only a few hundred items such as books, CDs and DVDs.

It has quickly expanded to offer 5500 items online, with jewellery and toys now popular and transactions every 90 seconds.

Whitcoulls soft-launched its online service earlier in the year and business has doubled in the run-up to Christmas, managing director Peter Kalan says.

Whereas a typical Whitcoulls store carries 10,000 titles, two million books are available online, so the internet is useful for back catalogue or obscure titles.

The retailer is hoping an upcoming 20 per cent-off promotion will send things stellar. "I think next week we'll really know if it's done more than double and it's actually gone exponential," Mr Kalan says.

Ben Powles, of online retailer Fishpond, says business has doubled every year since launch in 2004. He believes the recession has encouraged people to look online for cheaper prices.

Faster broadband has also helped. "People want to be able to see good pictures of what they're buying, and if it's taking you a long time to download those pages it's pretty offputting."

Mt Maunganui-based online toy retailer IQ Toys was listed in the Deloitte Fast 50 rankings of the country's fastest growing businesses for the second time this year.

Co-founder Shane Loomb says IQ Toys has always prided itself on its prices but it's now cutting costs so it can be even more competitive.

"I think people are realising that by going online to buy toys they're getting more opportunity to see a wider product mix, and getting competitive prices across the board."

Menswear chain Barkers launched its online shop in 2007 and sales have increased tenfold since then, managing director Zac de Silva says.

The internet is the perfect for his business, he says, as customers can see what's available in their size and with a consistent sizing know how the products will fit.

Kiwis are also increasingly use websites as a catalogue or for research before buying in a physical shop.

Barkers' research shows 38 per cent of its customers look online before they go into the shop, de Silva says.

According to search engine Google, 50 per cent of shoppers now research online before visiting the high street, with price comparison sites such as Price Me capitalising on the trend.

Director Chris Palmer says traffic has increased 100 per cent in the last six months, and the site now gets 7000 visitors a day.

However, not all stores have internet sales portals. Farmers has a website but does not sell online. Chief executive Rod McDermott says the store's wares do not suit the medium. Its fashion and seasonal ranges change often, and it sells a wide variety of brands with different fits and shapes.

"Our view is that customers need to experience the merchandise, to touch it and look at it and assess it."

CHASING CUSTOMERS

Toys

Leap Frog Baby Counting Pals:
* IQ Toys: $39.99 + $4.99 delivery
* Fishpond: $45.35 + $5.99
* Toys R Fun: $50 + $5

Games
Monopoly New Zealand Edition:
* Fishpond: $43.42 + $4.99
* The Warehouse: $39.99 + $5.99
* IQ Toys: $47.99 + $5.99

Books
Girl Who Played With Fire, by Stieg Larsson:
* Whitcoulls: $23.95 (free delivery)
* The Warehouse: $26.99 + $5.99
* Fishpond: $21.48 + $4.99

Prices correct as of yesterday