UK e-commerce growth figures were lower than expected in November, although they follow a verystrong performance last year, according to a survey.
The latest figures from the IMRG Capgemini e-Retail Sales Index recorded 11% year-on-year growthin November, just below IMRG and Capgemini’s forecast of 12-14% growth for the fourth quarter.
IMRG said the early snowfall in November last year most likely boosted early online sales, aspeople unable to access the high street shopped online instead. “Consumers this year may feel moreconfident in receiving their deliveries on time if they order in December,” the organisationsaid.
This dip in online sales growth mirrors wider retail trends. According to the British RetailConsortium, November saw the high street suffer its biggest annual fall in sales since May thisyear. “In the wake of the ongoing uncertainty surrounding the economy, it would appear that Britishshoppers are exercising greater caution in their purchasing decisions online as well as on the highstreet,” IMRG said.
In terms of specific sectors, clothing has been hit especially hard, recording just 8%year-on-year growth – the lowest year-on-year figures since May 2009, and in stark contrast withthe 34% growth reported in November last year.
“The mild weather last month, compared with the deep freeze this time last year, has clearlyimpacted upon consumers’ desire to update their winter wardrobes unnecessarily,” IMRG added.
Other sectors reporting disappointing sales include alcohol, which reported year-on-year growthof just 2%. However, the electrical sector, which has performed badly throughout 2011, has seen anunexpected return to form, reporting growth of 14% year on year, and an impressive 47%month-on-month increase.
Chris Webster, head of retail consulting and technology at Capgemini said: “While theselower-than-expected growth figures show that online is not immune to the economic slowdown, theshift from the high-street to online continues. Growth of just 11% is very disappointing for thistime of year, as traditionally shoppers start their Christmas shopping early to spread the cost ofpresents over several pay cheques. This does follow a particularly busy November last year, butnevertheless it is clearly a sign of consumers tightening their belts.”
Tina Spooner, chief information officer at IMRG said: “While the growth in e-retail sales inNovember is weaker than expected, this is on the back of a very strong performance in November2010, when the Index recorded growth of 22%. With consumers suffering the biggest squeeze on thecost of living and disposable incomes in over 50 years, it appears the strain on high streetretailers may now also be affecting the online retail sector.”
The IMRG Capgemini Index, which was started in April 2000, tracks online sales from around 100e-retailers based in the UK.
Following severe weather last winter that disrupted deliveries, delivery companies this year putconsiderable effort into preparing for this year’s busy winter season. Andrew Starkey, Head ofe-Logistics at IMRG, said: “Following Christmas last year, IMRG looked at the performance of theonline industry, based on data from major carriers and retailers, in order to develop some bestpractice guidelines should the worst occur again.
“These findings have been communicated to the industry and we know that all carriers andretailers are putting contingency plans in place so we are confident that we are in an excellentposition to deal with any disruption.”
