Quarterly growth matches annual forecast
- Q1 2014 sales up 17% on Q1 2013; the strongest Q1 growth since 2011
- Over £23 billion spent online during first three months of 2014
- March e-retail sales up 16% year-on-year and 8% month-on-month
- Average basket value reaches £86 excluding travel; highest in six months
- Garden sector surges 40% year-to-date as Britons brace themselves for scorching summer
These results further support the ongoing stability of the e-retail sector, which in March alone saw an annual growth of 18% and a 15% increase on February (excluding travel sector). Britons spent approximately £7.8 bn online last month, up from £6.7 bn in March 2013.
In terms of sector performance, a number of key retail segments stood out during the first quarter of the year. Accessories (up 34%), footwear (up 22%), health and beauty (up 23%) and home and garden (up 21%), all recorded impressive year-on-year growth.
Over the three month period, garden products saw a surge of 40%, while items for the home have seen an equally respectable increase of 18%. The sale of items for the garden were particularly strong in March, during which the sector grew 109% on February 2014.
Clothing and alcohol sales also saw a strong month-on-month performance in March, recording a growth of 21% and 31% respectively.
Rather than the upswing in sales being credited to simply more people shopping online, it has been determined that internet shoppers are spending more per purchase. The average basket value (excluding travel) hit £86 in March, making it the highest rate recorded since September last year and compares with £77 in February 2014 and March 2013.
Sales via mobile devices continue to grow unabated, with m-commerce recording a year-on-year increase of 53% (65% excluding travel) in March. Conversion rates are also on the rise with the average rate recorded last month reaching a five year high of 4.2%.
Tina Spooner, Chief Information Officer at IMRG comments: “This solid growth represents the strongest Q1 performance since 2011 with sales up 17% year-on-year. Following the exceptionally wet weather in February, it appears gardening enthusiasts were making the most of the March sunshine, with sales of garden products surging over 100% between February and March.
“With online transaction values reaching the highest level recorded in six months, and the average conversion rate for March at pre-recession levels, these results not only demonstrate an overall increase in consumer confidence, but also that online shopping is becoming a larger part of our everyday lives.”
Chris Webster, Vice President, Head of Retail Consulting and Technology at Capgemini: “This month’s Index is a good indicator of the current strength of the UK economy. It is interesting to see that spending over the last three months was not limited to just one sector or the result of one particular influence. Rather, Britons are in good spirits, have regained confidence in the economy and using online as a means to spend across the board.”
“The sustained high conversion rate in March also demonstrates the huge strides retailers have made in their online platforms and are continuing to focus on improving the customer experience.”
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