The IMRG Capgemini e-Retail Sales Index numbers are out and they show UK shoppers spent £22.9 billion online in just the first half of 2009. Online shoppers are looking for lower prices than can often be found in traditional storefront shops with their higher overhead. Online retailers provide plenty of bargains that lure shoppers away from shopping centres as they look for practical clothing like uniforms or lower prices on desired items not affordable otherwise. In June alone there was a 12.3 percent increase in online revenue though the recession is being felt by online retailers also. The upward revenue trend is slowing and that trend is expected to continue through the last six months of 2009.
The fact is that online retail sales are the primary growth driver for all retail sales both on and offline. Unlike storefront retailers, online revenues have shown growth even through the recession. Performing the best are clothing and footwear sales. More and more people are buying online and not just browsing which is driving sales up. Mike Petevinos is the Head of Consulting for Retail for Capgemini UK. He was quoted as saying “The online sales results for the first half of 2009 show a slight slowing of growth, as the recession weakens consumer spending on the web. However, growth still looks set to continue for the rest of 2009 with our predictions being at around 12%.
Tina Spooner, Director of Information at IMRG added the following comments to those of Mr. Petevinos:“Price continues to be a major factor for consumers when shopping online, with recent research suggesting that 90% of UK households are adopting more prudent buying strategies to cope during the recession. It is clear there will be challenges ahead in the coming months for e-retailers as they prepare for the lucrative festive season.”
(c) Image by Emily Lucima, www.sxc.hu/