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