UK shoppers still spend online despite recession

Online spending in the UK rose by 19% in January 2009 compared with the previous year, according to the latest figures from the IMRG Capgemini e-Retail Sales Index.

However, January detox programmes meant there was a large fall in sales of beers, wines and spirits.

IMRG/Capgemini said the figures showed online shoppers are not being put off by the recession and the January growth was an increase from the stable 15% growth seen throughout the second half o f2008.

But monthly growth in online spending fell for the second consecutive month.

IMRG/Capgemini said this was in line with the seasonal trend experienced in previous years of a January dip after the Christmas shopping surge.

Sector splits

After a strong Christmas performance, the monthly decline was strongest in the beers, wines and spirits sector, where consumers spent 62% less than in December, as Christmas excesses were replaced by a January detox.

The gifts sector also saw a marked decline in growth by 61%, showing that while consumers may have been making the most of January sales, they were purchasing personal items rather than presents.

Clothing, footwear and accessories, which consistently outperformed the total market and other sectors in 2008, also saw strong yearly growth of 32% in January.

Mike Petevinos, head of consulting for retail for Capgemini UK, said: “Our January results show that consumers are increasingly seeing online as the place to shop in the current environment, with year-on-year growth of nearly 20% for the month. Key drivers of this growth have been the electrical and clothing segments, reflecting the post Christmas sales effect on consumer spending.”

IMRG/Capgemini said the strong performance of online points to a continued need to invest in the development of e-commerce propositions.

However, it questioned whether bricks and clicks retailers can prioritise this sufficiently above the defensive strategies needed to combat tough high street trading. If not, the risk of widening the gap versus their pure play rivals will be inevitable, it said.