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NACS Insight Global Convenience Store Focus

  Global Convenience Store Focus > January 2009 issue > Surge in UK online spending

Surge in UK online spending

Growth in UK online spending in November surged 26% on October, according to figures released from the IMRG Capgemini e-Retail Sales Index.

Despite difficult conditions, growth was up 16% on last year. Shoppers appeared to be attempting to beat the recession in the run up to Christmas by heading online, with online retailers continuing to fare better than their high street equivalents.

For the first time this year growth was across the board with every sector tracked by the Index recording positive monthly and yearly growth.

Sales of shoes and accessories, in particular, grew strongly with gains of 32% and 108% respectively. But the growth in sales of clothes (18%) lagged behind, suggesting that shoppers may be updating old looks in favour of splashing out on a new wardrobe.

Consumers matched their online spending on party wear with alcohol purchases. Sales of beers, wines and spirits saw a strong monthly growth of 53%, as consumers prepared to get in to the festive party season.

IMRG's ceo, James Roper, said: “While we would naturally expect to see a monthly increase in online sales during this time of the year, it is perhaps surprising that we are continuing to see yearly growth during these otherwise difficult times for retailers.

“This is a sure sign that high street retailers should look to diversify their activities by fully embracing the online space, as their customers have.”

Paul Frantz, industry head – retail for Google UK, said: “The downturn in the economy is the first in the digital age and it is far from clear exactly how deep or lasting it will be. What is evident though, is that there is no slowdown in consumers’ adoption of e-commerce.

“The UK is Europe’s largest online market with residents already averaging 33 hours per month online. Online technology now offers a clear and unambiguous measurement of every pound, dollar or euro spent online.”