The UK online retail sector generated solid growth in October with the boom in mobile commercestill continuing and gift sales growing rapidly in the run-up to Christmas, according to the
British online retail association IMRG.Monthly figures for October from the IMRG Capgemini eRetail Sales Index indicate that UK onlineretail sales rose by 5% compared to September and by 14% year-on-year, with British shoppersspending £6.7 billion online last month.
In line with the earlier forecast by IMRG and Capgemini about record growth in online shoppingfor this year’s Christmas period, e-commerce sales are expected to hit £4.6bn over the two weeks ofDecember starting 3 and 10 December. This would equal a 15% increase compared to the same periodlast year with annual sales likely to meet the 14% growth level.
Like in September, sales via mobile devices have continued to rise at a remarkable pace, with261% year-on-year growth in October. The growing importance of mobile commerce in the Britishretail sector was highlighted by the forecast that 20% of online Christmas purchases during thepeak shopping weeks would be made via smartphones and tablets. This equals expected sales of nearly£1 billion providing huge opportunities for retailers who have implemented mobile solutions.
Andrew McClelland, Managing Director at IMRG, commented: “14% is a solid result for the OctoberIndex figures, albeit just below our quarterly forecast of 15% for Q4. This year, we really expectonline sales to hit their peak in early December, when we estimate £4.6bn will be spent during thepeak Christmas fortnight. The real story this year is about mobile though, as we anticipate that20% of online sales will be made through smartphones and tablets this Christmas. The pace at whichmobile sales have grown in 2012 is staggering and there are no signs it will slow up going into2013.”
The October figures also confirmed the continuous trend of online-only retailers exceedingmultichannel retailers in terms of year-on-year growth with the difference in growth widening to5%.
The gifts sector continued to boom in October with a 62% increase compared to the same periodlast year boosted by Christmas shopping. The British clothing sector also continued to grow solidlywith 12% year-on-year increase in October and an average spend of £60 which is the highest in overtwo years prompted by the cold weather. Beauty products remained popular last month with 20%growth.
The electrical sector saw the strongest year-on-year growth since July boosted by the release ofthe iPhone5 at the end of September. Demand from the committed Apple fans across the UK in Octoberfuelled the sector growth to 14%, both year-on-year and month-on-month respectively, IMRGreported.
Chris Webster, head of retail consulting and technology at Capgemini, added: “With the economyslowly improving but with a highly uncertain future, online shoppers are spending but onlycautiously as they save up prior to Christmas. There is much growth to be tapped in the internetmarket but knowing your target audience and matching their expectation with your offering iscrucial. The explosion in m-commerce suggests that retailers are meeting this expectation andsatisfying customer demand.”
“Overall the outlook for e-retail is very positive and the October results, though modest incomparison with that of September, only confirm our 14% year-on-year annual growth forecast and ourexpectation for a successful Christmas,” he concluded.
