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Online Shopping Loses Momentum
Listed under: News
Published: Monday, March 01, 2010
The number of people shopping on the internet showed its lowest annual growth rate this January, according to the latest IMRG Capgemini e-Retail Sales Index.
The result, which is currently the slowest increase in sales since the study began, reveals that year-on-year sales rose by just five percent this January, falling 22% from December 2009.
Despite the gloomy statistics, the report shows that internet sales remain strong, with shoppers spending an estimated £4.3 billion online during the first month of the year alone.
Although a fall in sales is traditionally expected following the Christmas surge, this year's decline
is far greater than that experienced in recent years.
Commenting on the report, Chris Webster, vice president of retail consulting and technology at Capgemini, says retailers should not be too disheartened by the findings, suggesting there could be a number of reasons for the poor statistics. “While annual growth for e-retail was slow in January, we should consider the fact that December was a very strong month for the industry,” he explains. “Last January, e-retailers’ sales were buoyed up by heavy discounting and promotions that were necessary to sell stock left over from poor Christmas trading resulting from the impact of the recent move into recession.”
Tina Spooner, director of information at IMRG, agrees, adding, “The weaker yearly growth in the UK e-retail market during January follows a strong Christmas, when online retailers were clearly well-prepared for the festive season, indeed, December 26th and 27th saw the highest sales for all of 2009. Less retailer discounting, due to well-planned stock levels and the increase in VAT, equally appear to have had an impact on the online retail sector during January.”
How was business for you this January? Email your thoughts to .(JavaScript must be enabled to view this email address)
The result, which is currently the slowest increase in sales since the study began, reveals that year-on-year sales rose by just five percent this January, falling 22% from December 2009.
Despite the gloomy statistics, the report shows that internet sales remain strong, with shoppers spending an estimated £4.3 billion online during the first month of the year alone.
Although a fall in sales is traditionally expected following the Christmas surge, this year's decline
is far greater than that experienced in recent years.
Commenting on the report, Chris Webster, vice president of retail consulting and technology at Capgemini, says retailers should not be too disheartened by the findings, suggesting there could be a number of reasons for the poor statistics. “While annual growth for e-retail was slow in January, we should consider the fact that December was a very strong month for the industry,” he explains. “Last January, e-retailers’ sales were buoyed up by heavy discounting and promotions that were necessary to sell stock left over from poor Christmas trading resulting from the impact of the recent move into recession.”
Tina Spooner, director of information at IMRG, agrees, adding, “The weaker yearly growth in the UK e-retail market during January follows a strong Christmas, when online retailers were clearly well-prepared for the festive season, indeed, December 26th and 27th saw the highest sales for all of 2009. Less retailer discounting, due to well-planned stock levels and the increase in VAT, equally appear to have had an impact on the online retail sector during January.”
How was business for you this January? Email your thoughts to .(JavaScript must be enabled to view this email address)
