UK e-retail sales growth was relatively subdued in April, up 10% compared with last year to anestimated £5.7 billion, although April 2011 was a particularly strong month and wet weather this
April meant that growth in online clothing sales last month was the lowest in the eleven years ithas been tracked by the IMRG Capgemini e-Retail Sales Index.This growth level comes in lower than IMRG and Capgemini’s 13% estimate for the year, and thatrecorded in the first quarter, although sales in April 2011 were boosted by the Royal Wedding, withthe market last April recording 19% growth.
IMRG said the wettest April on record “clearly impacted upon consumers’ desires to update theirsummer wardrobes”, as the clothing sector recorded growth of just 1%. “This is some contrast withApril 2011, which was the warmest April since 1910,” IMRG observed. The wet weather did, however,have a positive impact on the travel sector, which saw sales jump 20% year-on-year, as Britsflocked online to search for drier destinations.
With more and more retailers offering mobile-optimised websites, the number of mobiletransactions in April registered a huge spike of 353% year-on-year. The average conversion rate ofm-commerce has been improving as well. The conversion rate for m-retail in April (those shoppersthat visit a retail site via a mobile device and make a purchase from it) was only 2.4% lower thanthe e-retail conversion rate, at 1.3%, compared with 0.8% in April last year. This suggests thatshoppers who would previously only browse mobile stores to check for bargains and compare prices,are now actually also making purchases via the channel, IMRG added.
The launch of the iPad3 at the end of March played a positive role in helping the electricalsector reach a year-on-year growth of 26%, the highest since August 2010.
Tina Spooner, Chief Information Officer at IMRG, commented: “The slowdown in sales ofclothing over recent months may be an indication that this sector is showing signs of reachingmaturity. Year-to-date sales of clothing are up 10% year-on-year, compared with 28% annual growthrecorded in the period January to April last year. On a more positive note, sales ofelectricals were at their strongest level in over 18 months, no doubt boosted by sales of therecently launched iPad 3.”
Chris Webster, Head of Retail and Technology at Capgemini, said: “April was another month tomaintain pace for online retail with sales growing 10% on the same month last year, despite thedampening effects of a wet and chilly weather. Consumers continue their steady march to migratetheir purchases online, which means that the high street suffers the brunt of a slackeningeconomy.
“Mobile commerce continues to surge ahead as the latest shopping trend of customers on the go.It would be a good strategic move for multichannel retailers to power ahead with m-commerce andinclude it in their portfolio.”
The IMRG Capgemini Index, which was started in April 2000, tracks online sales, defined as ‘transactions completed fully, including payment, via interactive channels’ from any location,including in-store, for over a hundred of the UK’s largest e-retailers.
