Retail CIO’s must keep spending on online advertising is the message in the UK.

Retail sector CIO’s will need to invest in online shopping services during the current slowdown to meet the present and future demands of consumers, experts have signalled. Recent retail figures show that although consumer spending has gone down, online shopping continues to be healthy.

The e-Retail Sales index recently reported that online sales in the first six months of 2008 UK were far healthier that high street sales. “We predict between 30 and 50 per cnet of all retail will be online in the next 5 years,” said Mike Petevinos, head of retail consulting at Capegemini UK, which produces the r-Retail Sales Index with electronic group IMRG.

The e-Retail Sales Index revealed that customers are being tempted into shopping online by rising fuel costs, falling disposable income and because they beleive online retailing is more sustainable.

Online sales are expected to remain strong throughout 2008, despite the economy being predicted slow. “The ability to research and make more informed sensitivity is a key advantage of the online channel,” Petevinos said.

British shoppers spent £26.5bn online in the first six months of 2008, which is 17p in every pound, the e-Retail Index reports. This is a rise of 38 per cent from the same period in 2007. “Online sales are providing resilient to tough trading conditions,” said Petevinous.

James Roper, IMRG cheif executive, said that his organisation had found that 56 per cent of online shoppers believed e-commerce was more enviromentally sustainable than visiting the high street. These trends are putting pressure on retail CIOs to continue investments in systems that will meet customer demand.

The forecast  came as Marks & Spencer reiterated its intentions to invest in online retail and new technology, despite admitting to its shareholders that it faces two years of difficulties.

“We’ve invested behind the scenes in our IT and logistics infastructure in order to maintain service efficency,” Sir Stuart Rose, M&S chief executive, wrote in the organisations annual report. “We are introducing new point of sale systems, including more than 2000 new tills and 258 new handheld terminals to make stock checking easier and more efficient.” M&S said that over the next three years the company will invest between £150 and £250m per annum in technology.

Ian Dyson, group finance and operations director at M&S said: “In IT, we will implement new store systems, new trading systems and new support systems. We now have an integrated company-wide IT plan; a three year road map that sets out how our systems will deliver every aspect of our business plan, both within the UK and internationally.”

He also revealed that the IT strategy for M&S expansion into the worlds most important emerging market, China, is in place. New financial and back-office systems are also being implemented by Darell Stein, director of IT and logistics at M&S.