Shoppers in the UK spent a total of £5.4bn (equivalent to £106 per person) online during February, up 10% on the same time last year, according to new research.
The data, from the IMRG, marks a growth rate of just half that recorded in February 2011 (20%).
The 10% year-on-year growth of the Index marks the slowest rate reported since January 2010.
However, as mentioned above this figure does come off the back of a particularly strong February 2011.
This slowdown may also be attributable to other factors, such as the gradual phasing out of heavy discounts/ sales that were prominent during December and January.
Valentine’s Day helped boost sales in the e-retail sectors traditionally associated with romantic presents, including gifts which grew an impressive 26% month-on-month and 22% year-on-year.
Similarly, the lingerie and health & beauty sectors saw a year-on-year jump of 27% and 32% respectively, indicating that while British shoppers are tightening belts in response to ongoing economic uncertainty, they are happy to splash out on treats for their loved ones.
The clothing sector has continued to perform at an unusually low level for the fourth consecutive month, recording just 9% year-on-year growth in February.
However, like the wider Index, this is on the back of a very strong February 2011, which recorded a particularly high 34% growth. The sale of alcohol online has grown on January, jumping a significant 21%, suggesting the post-Christmas detox is well and truly over.
Growth in February came from a repeat high performance for online-only / catalogue retailers, who recorded year-on-year growth of 13%, exceeding the multichannel / high street retailers (defined as having both an online and a ‘bricks and mortar’ presence), who recorded growth of just 8%.
This is the second consecutive month that online–only / catalogue has outperformed multichannel / high street retailers.
Chris Webster, head of retail consulting and technology, Capgemini UK, said: “It is very interesting to see the growth of online-only retailers exceeding that of the multichannel. Low footfall and a disappointing performance on the high street could be affecting the multichannel retailers’ online counterparts. Online-only retailers’ rapid innovation and adoption of growth areas in e-retail, driven by mobile and click ‘n’ collect, seem to have put them ahead once again; now is the time for the multi-channel retailers to respond.”
Tina Spooner, Chief Information Officer at IMRG, commented: “Although growth in e-retail sales was lower than expected in February, it has to be considered in the context of the 20% rise seen in February 2011, so double-digit growth is still a positive result.
“It appears evident from the sales growth recorded by online-only/catalogue retailers over recent months that consumer confidence in the online channel is increasing. These results suggest consumers who may have initially looked to trusted high street brands when shopping online for the first time are now becoming more confident in purchasing from pure-play e-retailers. It is also interesting to note that the average e-retail spend for online-only/catalogue retailers is 10% higher than during the same month last year, while for multichannel/high street it is actually 8% lower.”
Comments from retailers
Jonathon Brown, Head of Online at John Lewis, said: “February was a tremendous month for John Lewis online seeing us continue to build on our outstanding performance in 2011. With sales +37% on 2011 we really have an offer that our customers are responding to in significant volume.
“All directorates saw increased sales both on last year and on our expectations, with fashion sales achieving a remarkable +50% on last year. Key sellers were in womenswear with customers not only buying our core brands such as Phase 8 and Hobbs, but also some of our new brands such as Seasalt and Desigual. Electricals and home technology saw market beating performance with sales +36% on last year with all areas in fine form. Finally home saw consistently outstanding performances with sales coming in at +31% on last year with strength across the board.
“So a tremendous start to 2012 and one that we are very confident we will be able to continue for some time.”
Russ Carroll, UK managing director of Shopping.com, comments: “Online spending remained steady in February with sales of accessories (up 30%) and nutritional products (up 48%) showing particularly strong year-on-year performances across the Shopping.com network. Laptop and tablet accessories also proved popular showing a month-on-month increase in sales of 43%, while clothing and cosmetic sales were up 15% and 5% respectively, perhaps as people snapped up a gift for Valentine’s Day.”
Sue Herrick, Buying Director at figleaves.com, comments: “We saw a 12% year-on-year increase in lingerie sales during the Valentine’s period. Black lace was the bestselling style, with the figleaves boudoir lingerie range having the biggest brand uplift year-on-year of 11%.”
www.imrg.com
www.capgemini.com
