Latest e-commerce trading figures show £4.5 billion spent online in March, with sales up 15% year-on-year thanks to improving weather
Latest e-commerce trading figures show £4.5 billion spent online in March, with sales up 15% year-on-year thanks to improving weather
Latest figures from the IMRG Capgemini e-Retail Sales Index, show that online retailers are continuing to draw in consumers, with 15% more spent in March compared to last year. An estimated £4.5 billion was spent online in the month, compared to £3.9 billion in 2009.
As winter relinquished its grip and in preparation for an early Easter, shoppers started to spruce up their homes and gardens in time for spring, with 42% more spent online in this sector in March. Brighter skies also encouraged consumers to invest in summer wardrobes, with sales of clothing growing by 27% compared to February this year.
The time for making travel plans
The travel sector saw sales fall by 9% on February as the flurry of post Christmas summer and ski holiday bookings died down. Year-on-year sales rose by 14%, which the Index suggested was perhaps a sign that Brits are abandoning ‘staycations’ this year in favour of hotter climes as optimism in the economy picks up.
Chris Webster, Capgemini vice president of retail consulting and technology, said: “These are solid figures and prove the continued resilience of online retail. The retailers themselves, particularly those with both an online and a store presence, have fought hard to attract and retain customers, even in a period of political uncertainty.
“As the weather starts to improve, this is having an impact on sales of garden furniture as people plan for summer barbeques.”
Tina Spooner, director of information at IMRG, added: “The 15% yearly growth in online sales is very positive and is evidence that e-retail continues to outperform the High Street. The strength of the multichannel approach within e-retail is also reflected in the March Index results. There is a strong trend emerging showing that high street retailers with an online presence are playing an increasingly significant role in the e-retail sector. Retailers with a diverse multichannel offering will no doubt continue to reap the rewards of their investment in the online space.”
Growth in multichannel sector
The Index also reveals that retailers with both an online and a store presence are performing most strongly, with sales up by 28% year on year. Sales for retailers with a purely online presence are up by only 1% on March 2009.
Mark Astbury, general manager for delivery service, Collect+ commented: “These March figures are a very welcome sign, buoyed by an early Easter and the recent good weather, which has benefited fashion retailers in particular. The economic outlook, however, remains uncertain. The current flight embargo may affect future sales and it's not unusual for 30 per cent of clothing and footwear purchases to be returned by savvy customers who prefer to try goods at home rather than in-store. To sustain growth, retailers must review all aspects of their business and it's vital they develop effective returns processes, which ensure fast turnaround of stock for resale, mitigate cost and maintain customer satisfaction with simple, convenient and cost-effective solutions.”
Jonathon Brown, head of online selling at John Lewis, said: “March was another very good month for johnlewis.com, helped by continued strong sales in core categories, the effect of Easter and the sustained focus on driving forward our online Fashion business. Overall sales increased 48% on last year with great results across all areas of the assortment. Most notable was fashion, which driven by new ranges such as the launch of Joe Casely Hayford (exclusive to John Lewis) and other premium brands, continued to flourish and delivered a year-on-year increase of well over 100%. Also notable was our performance in core categories such as white goods and furniture both growing by over 20% from 2009."
