Shoppers ready to slash web spending

The consumer slowdown on the high street is beginning to bleed into online retail as shoppers' confidence in their spending power takes a hit from the credit crunch.

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According to a survey of 1,000 UK online consumers by JupiterResearch, sponsored by search marketing firm LinkShare, 46 per cent of respondents said they are planning to reduce their online spending in the next 12 months.

There won't be any trickle back to the high street as a result, however, as 56 per cent said they will be spending less in bricks and mortar stores.

The research found that, as web shoppers' purses shrink, they will make more effort to search out the best deals. Some 95 per cent of the online consumers surveyed said they visit at least two sites before making a purchase and 39 per cent said they will step up such pre-purchase research to make sure they get the best possible prices.

Promotions and loyalty incentives will come into play more in online shopping, with 45 per cent of online consumers saying their decision to return to a particular retail site is strongly influenced by regular promotions, and one in three respondents also saying loyalty schemes or cash-back arrangements are big draws.

One consumer segment that doesn't appear to be affected by the onset of hard times is the luxury market. The research found luxury goods buyers expect to drop their online spending by only 1.5 per cent, compared to the 4.9 per cent average.

The study showed 45 per cent of the luxury shopper segment will often make unplanned online purchases, compared to the 22 per cent overall average.