THE RETAIL BULLETIN - The home of retail news
Lest we forget
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
Online sales growth slides to two year low

The latest figures from the IMRG Capgemini e-Retail Sales Index have revealed that UK shoppers spent a total of £5.4 billion, equivalent to £106 per person, online during February. This represented an increase of 10% on the same time last year, but was half the growth rate seen in February 2011.

GENERAL MERCHANDISE

Online sales growth slides to two year low

The latest figures from the IMRG Capgemini e-Retail Sales Index have revealed that UK shoppers spent a total of £5.4 billion, equivalent to £106 per person, online during February. This represented an increase of 10% on the same time last year, but was half the growth rate seen in February 2011.

The 10% year-on-year growth of the Index marks the slowest rate reported since January 2010. However, IMRG pointed out that this figure did come off the back of a particularly strong February 2011 and that the slowdown could also be attributable to other factors, such as the gradual phasing out of heavy discounts that were on offer during December and January.

Valentine’s Day helped boost sales in the e-retail sectors traditionally associated with romantic presents, including gifts which grew 26% month-on-month and 22% year-on-year. Similarly, the lingerie and health & beauty sectors saw a year-on-year jump of 27% and 32% respectively. Online sales of alcohol were up 21% in the month.

The clothing sector continued to perform at an unusually low level for the fourth consecutive month, recording just 9% year-on-year growth in February. However, like the wider Index, this was on the back of a very strong February 2011, which recorded a particularly high 34% growth.

Growth in February came from a repeat high performance for online-only/ catalogue retailers, who recorded year-on-year growth of 13%, exceeding the multi-channel/high street retailers who recorded growth of just 8%. This is the second consecutive month that online–only/catalogue has outperformed multi-channel/high street retailers.

Chris Webster, head of retail consulting and technology, Capgemini UK, said: "It is very interesting to see the growth of online-only retailers exceeding that of the multichannel. Low footfall and a disappointing performance on the high street could be affecting the multi-channel retailers’ online counterparts. Online-only retailers’ rapid innovation and adoption of growth areas in e-retail, driven by mobile and click ‘n’ collect, seem to have put them ahead once again; now is the time for the multi-channel retailers to respond."

Tina Spooner, chief information officer at IMRG, added: "Although growth in e-retail sales was lower than expected in February, it has to be considered in the context of the 20% rise seen in February 2011, so double-digit growth is still a positive result.

"It appears evident from the sales growth recorded by online-only/catalogue retailers over recent months that consumer confidence in the online channel is increasing. These results suggest consumers who may have initially looked to trusted high street brands when shopping online for the first time are now becoming more confident in purchasing from pure-play e-retailers. It is also interesting to note that the average e-retail spend for online-only/catalogue retailers is 10% higher than during the same month last year, while for multi-channel/high street it is actually 8% lower."

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

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
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
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
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
Fix The Dinosaur Roundtable 2018
Fix The Dinosaur Roundtable 2018
19 October 2018
The Euston Suite, The Hallam, 44 Hallam St, London W1W 6JJ
A Masterclass in IBMi Legacy Issues