Superfast broadband is boosting e-retailing and could result in a £740 million uplift in annual online spending once the roll-out across Britain is completed.

The study for Royal Mail revealed that across the UK, online shoppers have increased their annual spending by £225 million since taking up superfast broadband. This equates to an increase in spending of 3.1 per cent, or £23 a year, per superfast broadband user.

The analysis by the Centre for Economic and Business Research found that an additional £515 million could be added to online sales annually once the roll-out reaches the target of between 90 and 95 per cent of the population by 2017[3]. This would take the total increase in online shopping to £740 million each year.

Impact of superfast broadband across Britain The impact of superfast broadband roll-out on online sales varies significantly across the UK. Online shoppers in Scotland and Wales have increased their spending the most since receiving superfast broadband, at 5.1 per cent and 4.4 per cent respectively. This coincides with lower population densities in those parts of Britain (68 and 148 people per square km, compared with 407 for England) meaning distances from large shopping centres are likely to be greater and hence internet shopping more convenient, the report found.

Meanwhile, the South West of England experienced the lowest average increase at 1.4 per cent. The South West has the highest average age of residents in the UK, and these findings may reflect lower comfort levels with online shopping among those in older age groups, said the study.

For more information, please refer to Royal Mail’s website.