Record £4.5billion spent online in January sales

| Press release
‘IMRG Capgemini e-Retail Sales Index’ shows online consumer spending resilient across electricals and clothing - overall e-Retail market up 75% compared to 2007

e-retail sales index - capgemini and imrgOnline spending in the January sales reached a record high of over £4.5 billion according to new figures from the ‘IMRG Capgemini e-Retail Sales Index’. An equivalent of £74[1] was spent online for every person in the UK in January a year-on-year increase of 75%.

The IMRG Capgemini e-Retail Sales Index reveals that there is variation in the year-on-year growth of individual sectors.  Of the sectors that are broken out, the most popular items for online bargain hunters in January were electrical items and clothing which saw the highest year-on year growth.   Perhaps a sign of festive excess was the small 9.8% growth in the sales of beers, wines and spirits and the high 18% online spending on Health and Beauty.

Sector

Year-on-year increase in IMRG Capgemini Index

Electrical sector

38%

Clothing

32%

Health and Beauty

18%

Beers, Wines and Sprits

9.8%

 

The Index highlights that January’s high rate of growth is a change in direction from the previously falling trend – year-on-year sales in September was 73% which fell to 66% in November and then 49% in December.  The growth in sales volume over the last three months is more than double than the same period last year and is at the highest level since January 2003.  While the overall e-Retail market is growing because of more retailers entering the online market, the high growth is still concentrated on the bigger players who are capturing the consumers’ hearts and minds.   

e-Retail Sales Index

Anthoula Madden, Vice President at Capgemini UK’s Consumer Products and Retail Team says “The Index shows that January sales are as large a  phenomenon online as they are on the high street, with the overall online market continuing to show strong growth. The high growth in electricals and clothing suggests that much of this spending is being driven by shoppers treating themselves to the items missing from their Christmas stockings. The continued growth in the online sector underlines the importance to retailers of understanding and serving customers across all channels. “

Jo Evans, MD of IMRG, said: “Our members report that they have seen better than ever growth and larger retailers have had a particularly successful month. The internet is clearly allowing shoppers to make the most of sales periods and avoid the hectic high streets.”

 

ENDS

Notes to Editors

Quotes from retailers

Daniel Crown, CEO of Lookfantastic.com, said: “We had a great start to the year, January was better than expected. Customer activity was consistently strong over the entire month. There is definitely something to be said that people wait for a post Christmas market more than ever.”

lastminute.com UK managing director John Bevan said: “lastminute.com experienced record traffic figures and bumper bookings in January. “January is traditionally a busy time for the travel industry so to see bookings growth of 10% is tremendous, especially as travel is one of the most mature online sectors. Traffic to the site has been equally impressive as more and more people look online for their travel needs. lastminute.com experienced increased traffic and bookings on Christmas Day and this trend has continued throughout the New Year and into February.”

Dan Mountain, Managing Director of Buyagift.co.uk, said:  “We saw a fantastic uplift in sales in January, through the Buyagift.com web site sales were 49% up on January 2007. This is significantly higher than we had forecast. We also experienced an increase of 23% in AOV with our average transaction now being around £85, compared to £68 in January 2007.”

Zak Edwards, Managing Director of Prezzybox.com, said: “January was a great month for us with Prezzybox.com showing a growth of 40% on like for like sales from Jan 06. An ‘early birds’ January Sale (which started in late December) aided this growth and record Christmas order levels in December resulted in more repeat customers than have previously been recorded. All in all it’s been a fantastic start to the year”.

About The Interactive Media in Retail Group (IMRG)

IMRG (Interactive Media In Retail Group) is the industry body for global e-Retail. Formed in 1990, IMRG is setting and maintaining pragmatic and robust e-Retail Standards to enable fast-track industry growth, and facilitates its community of members with practical help, information, tools, guidance and networking. Consumers can be confident when dealing with IMRG Members because all have committed to operate using methods that are Honest, Decent, Legal, Truthful and Fair, and have undertaken to not bring the industry into disrepute. The strength of IMRG is the collective and co-operative power of its members.

About Capgemini

Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working - the Collaborative Business Experience - and through a global delivery model called Rightshore®, which aims to offer the right resources in the right location at competitive cost. Present in 36 countries, Capgemini reported 2007 global revenues of EUR 8.7 billion and employs over 83,000 people worldwide.

More information is available at www.uk.capgemini.com.

About the ‘IMRG Capgemini e-Retail Sales Index’

The IMRG Capgemini Index tracks ‘online sales’, which we define as ‘transactions completed fully, including payment, via interactive channels’ from any location, including in-store.  These sales are predominantly internet-based today, but the Index remains ready to record e-Retail sales conducted via whatever interactive channels the market may embrace in the future.

Approximately 60 e-retailers regularly contribute data to the IMRG Capgemini Index, including;

Airport Parking & Hotels Ltd, Ancestral Collections, Arcadia Group, ASOS.com, Avon Cosmetics, BeCheeky.com, Berry Bros. & Rudd, Boden.co.uk, Boots Direct, Buyagift.com, Carphone Warehouse, Cloggs, Comet, Co-operative Group (CWS), Co-operative Travel, Comet, Crocus.co.uk, dabs.com, Daxon, Debenhams, e-flowersUK.co.uk, EmpireDirect, Figleaves.com, Firebox, Furniture123, Game.net, GreatValueJewellery.com, Greenfingers.com, Interflora, I Want One of Those, J D Williams, Jason Shankey, John Lewis Department Stores, La Redoute, lastminute.com, Littlewoods Retail, Lookfantastic.com, Made in Sheffield, Marks & Spencer, Mothercare, Next, Otto UK (Freemans, Grattan, Kaleidoscope), PetPlanet.co.uk, Pixmania, Prezzybox.com, QED-UK, QVC, R C Roland, Redcats UK, Shoe-Shop.com, Shop Direct Group, Skinstore.com, Tesco.com Wine, Tesco Electrical, The Sunday Times Wine Club, TUI UK, United Co-op, Vertbaudet, Waitrose, Widget

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[1] Based on overall spend from the IMRG Capgemini e-Retail Sales Index’ divided by UK population according to CIA World Factbook - https://www.cia.gov/library/publications /the-world-factbook/print/uk.html