THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
2011 takes off with soaring online travel spend

Average basket value for travel sector highest since launch of sector in December 2008

GENERAL MERCHANDISE

2011 takes off with soaring online travel spend

Average basket value for travel sector highest since launch of sector in December 2008

The latest figures from the IMRG Capgemini e-Retail Sales Index reveal that shoppers in the UK spent a total of £5.1 billion online during January, equivalent to £83  per person; an impressive 21% more than the same time last year.

With limited disposable income available, it appears that rather than blitzing the high street January sales, shoppers opted instead for seasonal discounts on furniture and early bookings of annual holidays.

The results from the travel sector showed a 31% rise compared with the amount spent in January 2010. It seems Brits fought off the January blues with dreams of golden beaches and snow-capped ski-slopes. Significantly, the average basket value of holidays booked was £886, the highest recorded since the launch of the sector in December 2008.

Another sector that recorded impressive growth was home and garden. After five months of annual decline, the sector made a significant year-on-year leap of 56%, with an average basket spend of £120. This could be attributed to the brief glimpses of an early spring that were witnessed throughout the month and healthy discounts by furniture and DIY chains – as the heavy snow receded, British consumers made preparations for more pleasant climes.

Tina Spooner, Director of Information at IMRG comments: “While the Index results for January show a very encouraging start to the year for e-retailers, it is important to note this strong growth is on the back of the lowest-ever annual growth recorded in January last year when the e-retail market grew just 4.6%. Multichannel retailers performed well last month with sales growing by almost a third compared with January last year, but the pureplays and catalogue retailers saw annual growth dip to 8%, following a year of steady growth in 2010.

Sales of travel were strong during January, particularly after the severe winter weather in December. Clearly, Britons are not tightening their belts where holidays are concerned, with the Index recording the highest average spend in this sector in over two years.”

Chris Webster, head of retail consulting and technology at Capgemini says: “January was a very interesting month. As expected we saw a strong growth in the Index following a very weak start last year, but the jump in the travel sector and the gap between multi-channel and pure plays has come as quite a surprise.  In regards to the surge in travel, it seems that the British consumer is looking ahead to sunnier times and taking full advantage of the big New Year sales offered by the major travel operators. It remains to be seen whether the sector continues this growth in February following the recent announcement that Iceland’s second largest volcano, Bardarbunga, is on the verge of erupting.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Payment Roundtable 2019
Payment Roundtable 2019
6 February 2019
The Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
The Retail Bulletin Payment Roundtable will raise debate and discussion centred on but not exclusive to improving the in-store payment process