UK shoppers spent £6bn online during January – equivalent to £118 each – according to the latest figures from the IMRG Capgemini e-Retail Sales Index, which reveals a year-on-year growth of 16%.
When compared with the high-street and wider retail sector, the continued resilience of e-retail in the face of economic uncertainty is clear, says the study.
The British Retail Consortium reported a disappointing start to the year, with the traditional ‘bricks and mortar’ retailers indicating a year-on-year growth of just 2.1%. This poor result comes on the back of a continued decline in inflation, which suggests more needs to be done to reinvigorate consumer spending on Britain’s high-street.
Travel sales bounced back in January, following five consecutive months of decline, with sales soaring 205% on December. It is typical for travel to see an increase at the start of the year, as families look to book their summer holiday. But, for the first time since the sector was first tracked in December 2008, the average spend on travel has exceeded £1,000, which suggests that while the majority of Brits are finding their finances squeezed, the more affluent shopper is able to splash out on luxurious holidays.
Outside of travel, January saw a steep decline on December, with alcohol reporting a drop of 66% – a result, no doubt, of Brits looking to detox after Christmas, says the study. The clothing sector saw a monthly decline of 38% and while a drop in January across all sectors is typical, sales of clothing have recorded low levels of year-on-year growth for the third consecutive month, likely to be a result of the relatively mild winter.
Capgemini head of retail consulting and technology Chris Webster said: “There’s little cheer in these results for retailers. While the consumer price inflation is steadily decreasing, it has thus far failed to reinvigorate consumer spending. The steady march of customers moving from the high street to online channels continues and if anything, accelerates as savvy shoppers look to make their wages stretch further.”
