Online retail reached £14.7 billion in 2007 and is set to increase to £44.9 billion by 2012, according to the latest survey from Verdict Research.

Electricals accounted for a quarter (25.1 %) of online retail spending, followed by food and grocery.

Over 4,000 online shoppers were surveyed for the report and the study found online shoppers buying more and regularly, making 16.9% transactions, up from 14.2% in 2006.

Food and grocery is expected to experience strong growth in the next five years, and account for 29% of all online sales in 2012, while electricals will fall to 22%. The research showed broadband access is on the increase, with 55% of online shoppers having broadband at home in 2007, up from 30% in 2006.