£5.2 billion spent online during April representing a year-on-year increase of 19%, as strong start gathers pace
£5.2 billion spent online during April representing a year-on-year increase of 19%, as strong start gathers pace
The latest figures released today from the IMRG Capgemini e-Retail Sales Index have revealed continuing strong growth for online sales in April, with shoppers in the UK spending a total of £5.2 billion online, a significant 19% more than April 2010.
The monthly index compiled by the industry body’s members said the strong online showing was driven by the multiple bank holidays, Royal Wedding and good weather. Of all the sectors, alcohol saw the most significant growth, increasing 55% year-on-year and up 20% on March. Most significantly, the average order value reached £174, the highest basket value since November 2007, before the start of the recession, and nearly double that of April 2010.
Compared with April 2010, the clothing sector also climbed a whopping 32%; 8% more than March 2011. Another sector benefitting from the warmer weather was home and garden, which grew 14% year-on-year and 11% month-on-month.
Not all the sectors benefitted from the soaring temperatures, however. Spend on travel continued to disappoint in April, with the Index reporting an 8% drop from March and a solitary 1% increase from April last year.
Consistently beating High Street
Chris Webster, head of retail consulting and technology at Capgemini, said: “April was a very strong month for the online retail sector. 19% annual growth demonstrates, once again, the value consumers and retailers alike are placing on e-commerce. This is clearly evidenced by the fact that consumers continue to spend online, despite rising inflation and stagnant wages, resulting in a very flat performance on the High Street.”
Tina Spooner, director of information at IMRG, added: “These are highly encouraging results, with growth continuing largely in line with our estimation for 2011. The excellent growth in the alcohol and clothing sectors is very revealing in terms of modern consumer shopping behaviour; instead of just impulsively rushing out to the shops as soon as the sun comes out to buy the appropriate wares, people are browsing online to get access to the widest possible choice and ensure that they secure the best deals in these tough economic times.”
Michael Norton, managing director, PayPoint.net, commented: “The online retail industry continues to go from strength to strength despite the plight of the high street. Our data showed a 45% increase in the number of transactions compared with the same time last year as well as an increase of 34% in consumer spend. It is likely that the combination of the bank holiday weekends and the Royal Wedding has fuelled growth in the sector as consumers seek to avoid the crowds and shop at their convenience.”
The feelgood factor pays off
Rowan Gormley, IMRG member and founder of Naked Wines, said: “We need more royals and more weddings! Never in the history of extended bank holidays has so much rose been consumed by so many, so fast. We were over 100% up on previous year and 38% up on the previous month.”
Angus McCarey, UK retail director for eBay, said: "Mirroring the strong performance of clothing across e-commerce in April, overall monthly sales on eBay were boosted by sales of summer fashion accessories, as shoppers made the most of the good weather. We continue to see market-beating performance in our UK fashion category where year-on-year sales grew by 30% in 2010."
Mark Lewis, chief executive of parcel delivery network Collect+, which also recently signed up Boden, said: “Public holidays are an occasion when alternative delivery services really come into their own: Collect+ processed four times as many parcels in April 2011 than it did during the same period last year. Many small businesses and individuals cannot wait until the working week to be able to send a parcel or package, but the traditional services usually cease to operate on these days. Collect+ is going from strength to strength as the appetite for a more convenient and flexible service increases among the busy population.”
