Asda.com sees Chrismas potential

Christmas is typically the most profitable time of year for retailers and this year deems to be no exception. Online retailers especially will benefit, with forecasts set for Britons to spend more than ever online this festive season. With internet shopping to total a record £7bn, a rise of 40% in the three months running up to Christmas. Major retailers are fueling the online boom by heavily investing in their online service. Retailers such as Tesco and Argos are seeing growth in areas such as clothing and furniture - items consumers normally bought in-store. The new fashion trends are expecting to help online stores maximise on sales. Thanks to a shift in "fashion silhouettes" -- broader-than-normal changes in the cut and shape of the latest clothing -- trend-conscious consumers will be poised to buy.

Asda is one such company, aiming to cater to the online demand, and is expected to take on 1,800 staff in an expansion of its internet operations after admitting it misread online retail growth potential. Asda further aims expand Asda Living, its non-food store offering, from a trialing 7 stores to a national 300. In an interview with The Sunday Telegraph, Andy Bond, Asda's CEO, admitted that the chain had been far too late embracing the online revolution. "We were slow to understand how big a market and how big a customer demand there was for dotcom," he said. Projections for online sales will reach new heights.

Even after its online push, Asda is likely to face formidable competition from Tesco. Geographically, Tesco.com's service covers 95 per cent of the UK, but Asda's will cover only around 80 per cent, because of the lack of Asda stores in certain parts of the UK.