The UK online retail sector generated strong double-digit growth in December last year exceedingexpectations as well as for the year as a whole with similar growth rates expected in 2013,
according to the British online retail association IMRG.Monthly figures for December 2012 from the IMRG Capgemini eRetail Sales Index indicate that UKonline retail sales rose by 12% compared to November and by 17.5 % year-on-year with Britishshoppers spending an estimated £78 billion on online shopping in 2012. The overall growth of the UKonline retail market amounted to 14%.
Andrew McClelland, Chief Operations & Policy Officer at IMRG, commented: “It was a verystrong finish to the year for the online retail industry, with growth coming in above expectationafter a solid first half of the year. Looking ahead, IMRG and Capgemini are forecasting that theBritish e-retail sales will rise by 12% in 2013, with consumers spending £87bn online.”
Chris Webster, head of retail and technology, Capgemini, said: “2012 has been turbulent for theretail industry, but a solid if unspectacular Christmas made up for what has been an otherwisechallenging year.”
Sales via mobile devices rose at a remarkable pace in 2011, with total growth of 304% on 2011.During last year’s Christmas period, mobile devices emerged as popular gifts. IMRG expects thisstrong growth to continue throughout 2013.
Webster confirmed: “The big stand out is mobile commerce and its growth in the last 12 monthshas been staggering. The developments in the technology and the steps taken by retailers to improvetheir mobile services have seen a shift from browsing, to a fully fledged commerce site integral toour shopping experience. Visits and sales from either a smartphone or a tablet device are nearlyfour times higher than last year – we are reaching a point where we are spending longer on ourphones shopping than making calls.”
Commenting on the sales conversion rate, the association said: “Usually between November andDecember, we see a rise of around 1% in the conversion rate, but last year there was a reversal ofthat trend with the rate actually dropping slightly. Although the sales performance was verystrong, this shift in conversion rate suggests that consumers are increasing their use of theinternet as a research tool as part of any purchase decision, whether eventually made online oroffline. The continuing economic situation is forcing many consumers to ensure that they get thebest possible deal for their spending,” IMRG explained.
“This year, we’ll see the role of mobile devices evolve as retailers use the technology as thedefault channel to reach us and personalise our shopping experience, whether we’re online at home,on the bus or even in store. Retailers will adopt a more connected retail model, merging thephysical shopping experience with an online one, such as offering customers tablets to browse theinternet while they compare products in store,” Webster concluded.
