A new study says that online sales are expected to rise 20 percent this year to £112 billion and, interestingly, the biggest growth sectors will be pet supplies and cosmetics. According to Forrester Research and Shop.org’s annual State of Retailing Online study, the Internet has more than doubled in 3 years and companies are now offering consistent prices on their Web sites and in their brick-and-mortar outlets, and use gift cards and loyalty programmes to increase sales.

Taking travel out of the equation, 2006 sales are expected to increase 22 percent to $138 billion. “Online is a key growth driver for retail overall,” said Shop.org Executive Director Scott Silverman. “It’s going to be a bellwether for overall retail.” Computer hardware and software, cars, and apparel, accessories and footwear are expected to be the largest non-travel categories driving the increase, with anticipated sales of $16.8 billion, $15.9 billion and $13.8 billion, respectively.
But sales of pet supplies, cosmetics and fragrances will increase faster than other categories at growth rates of over 30 percent, the report found. Last year, online sales rose 25 percent to $176.4 billion, with 28 percent growth in online purchases excluding travel.

Of particular interest to clients in Swansea, Neath and Port Talbot, gift cards offered by nearly half of all online retailers and loyalty programmes offered by a third have helped increase sales, the study found. Additionally, greater integration between retailers’ traditional stores and their Web sites have alleviated pricing confusion and increased loyalty, Silverman said.

Dragon’s Den is the BBC 2 programme which gives entrepreneurs the chance to pitch their ideas to a panel of successful business experts, in return for a financial investment. Here’s the pitch from the Dragon’s Den website:

All manner of money-spinning minds will step into the intimidating world of business financing, determined to make their dreams come true. All they need is the cash. To get this, they must face the Dragons, all of whom are formidable business thinkers with the money to make things happen.

But this is no lottery - the contestants will need all their powers of reasoning, presentation and persuasion to convince our five business experts that theirs is a product worth investing in. The Dragons know what makes a successful idea, how much it’s worth and how much cash is needed to get it off the ground.

Going into their next series they are now looking for entrepreneurs to get in touch with them and to appear on the programme. If you believe you have a great product or idea which could do with a financial injection, get in touch with the team either through the Dragon’s Den website or by filling out a Dragon’s Den Application Form.

Though we couldn’t spot any hopefuls from Wales, we would recommend that you tune in to see the first instalment of the popular programme The Apprentice, which starts tonight at 9 p.m. on BBC 2. Over the coming weeks we are bound to see some heated discussions, some interesting business techniques and Alan Sugar say, on many occasions, the famous words: You’re Fired!