£7.75bn expected to be spent online during five-week Christmas shopping peak

£7.75bn expected to be spent online during five-week Christmas shopping peak

The latest figures from the IMRG Capgemini e-Retail Sales Index have revealed continued growth in October, with British shoppers spending a total of £5.9 billion online – a 14% rise on the same time last year, and a 7% increase on September 2011.

The 14% rise recorded for October suggests the Index will meet IMRG and Capgemini’s recently revised prediction that the total market will close the year on 16% annual growth. This result will be helped, in part, by the strong online sales predicted for Christmas – an estimated £7.75bn will be spent during the five-week shopping month of December (starting 28 November), almost half of which (£3.72bn) will be spent in the first two weeks alone it added.

Mixed performances across sectors

Chris Webster, head of retail consulting and technology at Capgemini, said: “The market is growing in line with our forecast, but the picture is mixed. Tough economic conditions are hurting retailers in commodity markets, such as electrical, as deep discounting is eroding profits. In other sectors, for example travel, online allows retailers to get ahead of the competition by using innovative strategies reach affluent consumers and make money even in sectors which overall are not performing well.”

Tina Spooner, IMRG chief information officer, added: “October’s performance was at the top end of our 12-14% forecast for Q4 [the fourth quarter], so on the whole the outlook is positive. Low-value product sectors are continuing to boom, with accessories up 50% as consumers look to buy bags and belts to complement their outfits rather than replenish their wardrobes, and likewise health and beauty reached a record high of 53% growth. Clothing retailers in general had a slow start to the month; we usually see a peak around the end of September, but it actually appeared near the end of October this year. This can be attributed to the very mild weather affecting consumer interest in their autumn ranges.”