Online shopping slows in January
February 25th 2010 The IMRG Capgemini e-Retail Sales Index has recorded the lowest annual growth rates in the history of the Index.
Like-for-like growth rose by only 5% from January 2009 to January 2010, with UK shoppers spending £4.3 billion online in the month.
Monthly growth fell by 22% from December 2009 to January 2010. This is in line with the usual seasonal trend of sales falling after the Christmas surge, but the decline is greater than in recent years.
After a strong performance over Christmas, the monthly decline was strongest in the beers, wines and spirits sector, where consumers spent 58% less than in December, as Christmas excesses were replaced by a January detox.
Tina Spooner, director of information, IMRG, said: “The weaker yearly growth in the UK e-retail market during January follows a strong December when online retailers were clearly well prepared for the festive season. Less retailer discounting due to well planned stock levels and the increase in VAT equally appear to have had an impact on the online retail sector during January.”
Bruce Fair, MD of Kelkoo UK added: "Despite a significant slowdown in January, we are still predicting solid growth in the e-retail sector this year, with the market expected to grow by 12% by the end of 2010. By the end of the year, online shopping will account for £1 in every £10 spent in the retail sector.” More articles from Handling & Storage Solutions: | 
