The IMRG Capgemini e-Retail Sales Index reveals that British shoppers spent £5.3
billion online in November. Sales were up by a quarter (25%) compared to October,
and by 11% compared to 2008.  November saw typical seasonal growth in online sales,
with retailers starting to experience the pre-Christmas surge from the first week
in November.

Christmas shopping trends

Despite sales increasing ahead of the festive season, year-on-year growth has
slowed in 2009, in line with the maturing of the online retail industry over the
last couple of years. This is also attributed to shoppers holding out for bargains,
rather than reducing their online spend entirely.

The past two years have seen retailers putting in place seasonal price cuts and
promotions in December rather than January, meaning that many consumers have chosen
to delay their Christmas shopping this year.

Christmas falling on a Friday in 2009 may indicate that shoppers are allowing
shorter delivery windows than usual, a sign of increasing confidence in retailers’
ability to deliver on time. Typically the first week in December is the ‘peak’
week for Christmas shopping online and there is some evidence that this may well
be the case again in 2009. Indeed, Carl Clump CEO of Retail Decisions (ReD), card
fraud prevention and payment processing experts says:

“We’re witnessing a 17% rise in online retail sales through December, which shows
how important the internet has become as part of our daily lives. We are also
seeing online shoppers spending their Christmas money with the larger retailers,
because they have confidence in the longevity of reputable brands.”

Mike Petevinos, Head of Consulting for Retail at Capgemini UK, said:

“November’s results show a solid growth for online retail in the run up to Christmas.
Given retailers perceptions that consumers are holding out for November bargains,
this would suggest a strong December for online. The challenge will be to ensure
that value is at the forefront of the Christmas message, with carefully designed
promotions becoming the norm across the sector. Inspiring confidence in late delivery
windows could also become a differentiator for those that have got it right.”

Sector splits

The accessories and gifts sectors showed the strongest growth in November. Sales
of gifts more than doubled (105% increase) compared to October, and rose by 56%
compared to last year. Sales of accessories online rose by 114% month-on-month
and 68% year-on-year, perhaps as shoppers with less money to spend on Christmas
parties compared to previous years, spruced up existing outfits with new accessories.

Year-on-year growth in the clothing, footwear and accessories sector rose 14%,
although this is approximately half the rate of November 2008, indicating that
this sector is reaching maturity.

Tina Spooner, Director of Information at IMRG said:

“It is encouraging to see continued growth in the e-retail market which is clearly
an indication of consumers’ confidence in the online channel. We would expect
this positive growth in online festive sales to continue during December as retailers
seize the opportunity of targeting their customers with promotions and offers
in the final shopping days in the run up to Christmas.

With many online retailers offering last order dates for pre-Christmas delivery
as late as 23rd December, with a few promising same day delivery on Christmas
Eve, even last minute festive shoppers can avoid the high street crowds this year.”

 

Sector

% Change Month on Month

% Change Year on Year

Total Market

25%

11%

Clothing, Footwear and Accessories

19%

14%

– Accessories

114%

68%

– Footwear

26%

32%

Electricals

51%

23%

Beers, Wines and Spirits

48%

9%

Gifts

105%

56%

Health and Beauty

73%

10%

Lingerie

39%

0%

 

Jonathon Brown, Head of Online Selling, John Lewis Direct commented:

“November was a very strong month for johnlewis.com with year on year out-performance
seen across all key categories of Home, Electrical and Home Technology and Fashion.
Overall the site was over 50% up year on year, with some stunning performances
especially in Fashion (over 90% up on the year before), which is a testament to
the focus we have given to this area over the past few months.”

ENDS

Notes to Editors

Further quotes from retailers:

Cameron McLean, PayPal’s General Manager for UK merchant services, said: 

“As you would expect we saw a big uplift in online transactions in the first
week of December as people started their Christmas shopping. We expect the rest
of December to be just as busy with people logging on to buy more presents and
bag themselves a bargain in the December sales.

“Whilst online retail sales have been strong in 2009, PayPal forecast earlier
this year that they were set to grow by up to 137 per cent between the end of
2008 and the end of 2011. Recent research from PayPal revealed that tracking down
a good deal is a top priority and one of the main reasons why people shop online.
The increase in prices caused by VAT returning to 17.5 per cent in January may
well make shoppers even keener to go online to find a bargain.   As the economy
recovers, e-commerce will play a lead role in taking the UK retail sector out
of recession.”

Shop Direct Group Chief Executive, Mark Newton-Jones, commented:

“We saw double digit online sales growth year on year in November and early December
as our customers clearly started planning ahead for Christmas.  In our peak weeks
we have seen over 7m visitors to our websites.

“Last year’s peak was concentrated into two weeks.  This year we have seen four
equally large trade weeks; the last two weeks of November and the first two weeks
of December.  The busiest days have been Mondays with the busiest hours being
12.00 – 2.00 pm and 8.00 – 9.00 pm, once the kids have gone to bed.

“As the peak has extended and we see more customers growing in confidence to
shop closer to Christmas, we have pushed back our last order date to 8.00 pm on
23 December to capture those last minute presents.”

Zak Edwards, Managing Director of online gift retailer Prezzybox.com, said:

“Sales for Prezzybox.com in November were phenomenal, marking a growth of 107%
on November 2008. This certainly bucked the trend of the credit crunch. This success
is attributed to an aggressive marketing campaign throughout the year, culminating
in the distribution of over £5m worth of Gift Vouchers with a telecoms partner.”

Christian Robinson, Managing Director of Firebox, comments: 

“Firebox has seen a tremendous level of demand during November, with retail sales
up 33% on 2008 figures.  The launch of our Global Secret Santa campaign this month
has been a success, with 23 countries taking part so far. We are excited about
December sales which are set to grow further and are aiming for our best Christmas
yet!”

Giles Harridge, co-founder of GettingPersonal.co.uk, says:

“Our November sales were way ahead of our forecast and expectations.  Our like
for like sales directly through our web site in November (excluding our channel
business) increased 57% year-on-year and was up 123% on October.  This follows
consistently strong growth throughout 2009, culminating in GettingPersonal.co.uk
being ranked 12th in the Sunday Times Virgin Fast Track 100,  the definitive guide
to the fastest growing privately held companies in the UK.  

“There is no single factor contributing to this growth, rather a mix of the enthusiasm
of our customers for our unique products and the fact we deliver on our service
promise every time, which gives people the confidence to keep coming back. It
seems the market remains buoyant when a company offers a great range of products
and excellent service.”

About 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.

Over one hundred e-retailers now regularly contribute data to the IMRG Capgemini
Index, including Airport Parking & Hotels Ltd, Amara, Arcadia Group (Burton,
Top Man, Top Shop, Dorothy Perkins, Evans, Wallis, Miss Selfridge), Ascension
(formerly Adili.com), ASOS.com, Beautique.com, BeCheeky.com, Binends.com, Black
Essentials, Blacks, Boden.co.uk, Boohoo.com, Boots Direct, Brora, Buyagift.com,
BuyItDirect.co.uk, Carphone Warehouse, Charles Tyrwhitt,  Clarks, Cloggs, Comet,
Co-operative Travel, Crocus.co.uk, Dabs.com, Damart, Daxon, Debenhams, Dobbies,
e-flowersUK.co.uk, Ethical Superstore, Faith Shoes, Figleaves.com, Firebox, First
Choice, Freemans Grattan Holdings, Furniture123, Game, Gameplay, Gamestation,
Getting Personal.co.uk, GreatValueJewellery.com, Greenfingers.com, Holiday Extras,
Home & Cook, House of Fraser, Interflora, JD Sports, J D Williams, Jack Wills,
Jason Shankey, John Lewis Partnership, Ladderstore.com, La Magia, La Redoute,
Lastminute.com, Lighting-Direct, LK Bennett, Lookfantastic.com, M and M Direct,
Made in Sheffield, Marks & Spencer, Millets, Monster Travel, Musto, Naked
Wines, NaturalCollection.com, New Look, Next, Peacocks, Perfect Handbags, PetPlanet.co.uk,
PIXmania, Prezzybox.com, QED-UK, QVC, R C Roland, Redcats UK, Redfoot Revolution,
Richer Sounds, Rubber Sole, Sainsbury’s, Scales Express, Shoe-Shop.com, Shop Direct
Home Shopping, Schuh, Serenata Flowers, Shudoo, Slurp.co.uk, SockShop, Sofa and
Home, Sunshine.co.uk, Tesco.com, Tesco Electrical, The Fragrance Shop, The Health
Supermarket, The Natural Store, TUI UK, Turton Wines, Vertbaudet, Vie at Home,
Waitrose, Wallace Sacks, Wilkinson Hardware & Winedirect.co.uk