The latest figures 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 and equivalent to £84 per person.
This is in contrast to a recent report from a leading analyst house, which predicts the high-street will remain stagnant for the next decade.
Key findings from the latest IMRG report include:
• £5.2 billion spent online during April; year-on-year increase of 19% as strong start gathers pace
• Bank holidays boost alcohol sales, with average order reaching £174, nearly double April 2010
• Travel sector suffers as rising temperatures and Royal Wedding persuade Brits to stay at home
• Clothing sector up 32% year-on-year as early sunshine prompts changes in wardrobe
Make mine a double
The strong online showing was undoubtedly driven by the bank holidays, Royal Wedding and of course the glorious sunshine. 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.
The scorching early summer sunshine confirmed it as the hottest April since 1910 , which had a clear impact on the clothing sector. The rising climes drove consumers online to update their wardrobes. Compared with April 2010, the sector climbed a whopping 32%; 8% more than March 2011. Another sector benefitting from the warmer weather was home and garden, which probably received a boost by Brits pondering the prospect of basking in the sun. The sector 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 lowly 1% increase from April last year. This can be attributed to two likely factors: the struggling economy and ongoing austerity measures being implemented by the Government, combined with the warm weather, have possibly convinced consumers that a ‘staycation’ is a good alternative to costly trips overseas.
Chris Webster, head of retail consulting and technology at Capgemini says: “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 on-line, despite rising inflation and stagnant wages, resulting in a very flat performance on the high-street.”
Tina Spooner, Director of Information at IMRG comments: “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.”
Source: www.imrg.org
