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
Warm weather blamed for slowest growth in online sales since 2010

New figures from the IMRG Capgemini e-Retail Sales Index have revealed that annual UK online retail sales grew by 7% in September to mark the second lowest ever growth rate in the index and the slowest growth since 2010.

GENERAL MERCHANDISE

Warm weather blamed for slowest growth in online sales since 2010

New figures from the IMRG Capgemini e-Retail Sales Index have revealed that annual UK online retail sales grew by 7% in September to mark the second lowest ever growth rate in the index and the slowest growth since 2010.

While an estimated £8.2 billion was spent online, multi-channel retailers were found to be more successful than online only retailers in resisting the downward trend. Multi-channel retailers saw 8% year-on-year growth compared to 5% for online only merchants.

The clothing sector grew by just 0.3%, the lowest ever growth recorded for the sector, as the unseasonably warm weather discouraged shoppers from updating their autumn wardrobes. Footwear slowed to 4.5% year-on-year but accessories continued to perform strongly with sales up by 48%.

The figures show that average growth overall in the third quarter reached 13% year-on-year. The electrical sector sustained strong growth of 15% in the same period, driven by strong consumer demand for the new iPhone 6 range, launched in September. Meanwhile, the home and garden and alcohol sectors benefited from the warm summer and milder autumn with growth rates of 17% and 16% respectively.   

Despite the continued migration to mobile commerce, this sector saw the lowest growth rate at 29%, which is a significant drop from the previous all-time low of 36%.  

Tina Spooner, chief information officer at IMRG, explained: “As clothing and fashion merchants launched their autumn/winter ranges, temperatures during September reached levels significantly above early autumn averages so it is no surprise that winter coats and boots were not at the top of our online shopping lists.

“This is not the first time we have seen unseasonal weather having a detrimental effect on e-retail sales, however, on a more positive note, it appears the milder temperatures during September boosted sales of beer, wine and spirits and garden products.

“As we enter the fourth quarter and retailers prepare for the key festive trading period, we expect growth levels to return to the consistent double-digit figures we have seen throughout 2014.”  

Adgild Hop, principal and head of retail consulting at Capgemini, added: “As is so often the case, weather has once again influenced retail growth this month.  Retailers across the UK, but in particular those retailers with more seasonal trade, will no doubt be hoping to recoup some of the lost sales before markdown pressures take over. 

"In addition to lying awake at night worrying about the fast approaching Black Friday and Cyber Monday as the prelude to Christmas, no doubt a lot of retailers will be saying a little prayer to the weather gods.”

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