E-commerce shopping spending index indicates positive growth continued during January and February
E-commerce shopping spending index indicates positive growth continued during January and February
The latest figures from the IMRG Capgemini e-Retail Sales Index reveal that shoppers in the UK spent a total of £4.9 billion online during February, 20% more than the same period last year.
In stark contrast to recent reports that indicated the high street suffered its weakest sales growth for two years, the index found British consumers spent £10 billion online during January and February, exceeding earlier expectations.
The index also suggested that many New Year’s resolutions and detox diets have fallen by the wayside, as sales in alcohol saw a massive increase in February as Brits stock up ahead of the expected increase in duty in the Budget later this month. Alcohol sales leapt 37% on January and up 25% on February 2010.
The clothing sector also saw a significant rise, with year-on-year growth reaching 34%, which the index said was perhaps a result of Brits looking to ditch their thick winter wardrobes as the UK experienced the mildest February since 2002.
High Street trails behind
Chris Webster, head of retail consulting and technology at Capgemini, stated: “February was a good month for online retail, up 20% on the same period last year. This increase is on the back of a very solid second half to 2010 and, while some of the growth can be attributed to a weak start last year, nearly £5 billion spent online is very significant and in stark contrast to the weak sales experienced by the traditional bricks and mortar retailers.”
Tina Spooner, director of information at IMRG comments: “The February Index results paint an optimistic picture for the e-retail market, especially when compared with the poor performance of traditional retail sales last month. UK shoppers spent a staggering £10bn online during January and February, a clear indicator of how strong consumer confidence is in the online channel even during a period in which high street spending is down.”
Jonathon Brown, head of online selling at John Lewis, IMRG member and regular index commentator, said: “February was another strong month for johnlewis.com as we moved from the extreme highs of peak trading and Clearance into the transition of new ranges for Spring/Summer 2011. Overall sales were up over 22% on the year with all our directorates exceeding expectations and performing well above 2010.”
Key to retail growth
Phillip Rinn, director of advertising partnerships at eBay Advertising, commented: “That UK online shopping spend broke the £10bn barrier by the end of February highlights how resilient the UK e-commerce market has become. With low consumer confidence and the rise in VAT leading to nervy New Year forecasts being issued about the traditional UK high street, online retailers are still in a position to announce strong sales and remain one of the primary drivers of growth in an uncertain retail market.”
Rinn added: “Shoppers are voting with their feet: the online retail market is seemingly resilient to the challenges facing the traditional retail landscape so brands need to make sure they have a strong presence online to capitalise on this shift in consumer behaviour.”
