E-Retail Sales Index reports sales up by 13% compared to February 2009 as shoppers treat loved ones to ValentineÂ’s gifts

E-Retail Sales Index reports sales up by 13% compared to February 2009 as shoppers treat loved ones to Valentine’s gifts

Valentine’s Day gifts helped online to bounce back from a disappointing January, according to latest figures from the IMRG Capgemini e-Retail Sales Index, with shoppers spending 13% more in February compared to last year.

The Index found an estimated £4.1 billion was spent online in the month, compared to £3.6 billion in 2009. Online sales declined 4% from January, which it said indicative of a seasonal fall following Christmas and competitive New Year promotions.

Sales broken down by sector suggest traditional Valentine’s Day gifts were traded in for more intimate purchases of underwear and perfume. The gifts sector (including items such as flowers and hampers) was down by a third (31%) in the week prior to Valentine’s Day, in sharp contrast to sales of lingerie and beauty products, which showed strong annual growth of 30% and 25% respectively.

Maturing channel sustains growth

Chris Webster, Capgemini retail consulting and technology vice president, said: “It is reassuring to see that romance hasn’t been lost in the recession, and shoppers clearly haven’t lost the love for online retail. The growth of less traditional sectors in February paints an optimistic picture of consumers picking themselves up following the doom and gloom of the last couple of years. Despite online retail’s maturity, it is still showing strong growth levels of 13%.”

Tina Spooner, IMRG director of information, added: “The double-digit growth in the Index during February is in line with our predictions for the e-retail market. Although overall gift sales declined last month, sales of health and beauty products and lingerie were strong in the run up to Valentine’s Day, which shows that the celebration of the most romantic day of the year is significant in the online retail calendar.”

Online continues to outsell High Street

Multichannel retailers’ online sales continued to grow against online only retailers’, with shoppers remaining loyal to High Street shops with an online offering. Multichannel sales were up 24% year-on-year, whereas online-only sales increased by just 4%. Multichannel retailers are also managing to grow the amount of visits to their sites that are converted into actual purchases. On February 2009, multichannel retailers average conversion rate was up by 11%, while there was no growth in the conversion of online only retailers like for like.

Buyagift.com, an online provider of gift experiences, comfortably exceeded growth targets set for February 2010. Alison Wade, Buyagift.com head of marketing commented: “Buyagift.com saw a 32% increase in revenue compared to the same month in 2009, and over 67% growth in the amount of orders received compared to this time last year. With ambitious growth targets looking certain to be met for Q1 [first quarter], the company appears to be set for another bumper year.”