INTERNET BUSINESS NEWS-(C)1995-2005 M2 COMMUNICATIONS LTD

Nearly 40% of adults in the UK are expected to buy at least some of their Christmas gifts online, representing a 22% increase from four years ago, according to a survey of 1000 people conducted by analyst Mintel.

Mintel's UK Retail Briefing report claimed that more people are choosing to shop online, leaving high street stores to struggle, and suggested that 15% prefer to shop online for Christmas gifts, representing a 5% increase from last year.

People in the UK are expected to spend an average GBP600 on gifts this Christmas, according to Axa, an insurance company - only consumers in the US are predicted to spend more. Axa said around 25% of those in the UK are expected to use credit cards and loans to fund their shopping and claimed the spending figure is twice as high as for consumers in France and Germany.

Mintel said those shopping online tend to be relatively wealthy and younger and said the most popular purchases this year are likely to be DVDs, music, computer software and videos. It said, with Christmas Eve falling on a Saturday, high street stores should experience a last minute surge in shoppers, though Internet retailers and Tesco are expected to take much of the retail growth.

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