IMRG Capgemini e-Retail Sales Index: Highest average January spend for online retail in seven years

The average basket value (ABV) for online retailers was recorded as £85 in January 2017 – up from £79 a year earlier and making it the highest value for that month since January 2010. By comparison, the average in 2016 was £81.*

While multiple sectors – including clothing, gifts and accessories – recorded a rise in ABV, the electricals sector dropped to £129, down -12% on January last year. The same sector also continued its recent run of low growth with online sales down -9% year-on-year (YoY), falling for the second month running.

Looking at other sectors, sales growth for clothing retailers was up +11% YoY – a respectable figure, but actually the lowest growth rate for this sector since March 2016. Growth for the gifts sector was at an eight-year high however, up +62% YoY, making it the highest growth for this sector since December 2009.

Justin Opie, managing director, IMRG: “January’s figures reveal a steady start to the year, but 2017 is not without its challenges for online retailers. The most pressing one relates to the devaluation of the pound following Brexit, as it means price rises are looming for an industry where retailers often get pressured into a cycle of discounting to stimulate sales activity among customers. One area where we may see a big impact is electricals – already having a tough time online with sales growth down -8.5% in January and the average basket tumbling. Sonos, Microsoft and Apple among others have recently announced big price hikes of 20% and over to come, so retailers in this sector may continue to have a difficult period to navigate going forward.”

Bhavesh Unadkat, Principal Consultant in Retail Customer Engagement Design, Capgemini: “A growth rate of +12% for online retail is pretty strong. However, when compared with the growth rate for the last quarter, it has certainly steadied.  The rise in inflation will raise caution among shoppers and with price hikes expected across petrol, electricals and food, this caution will remain for some time to come.  The focus for retailers in 2017 should be on ensuring they can capture as much of the UK market share as they can, as well as exploiting international sales, should the pound weaken.”

-ENDS-

*Excluding travel participants

About the ‘IMRG Capgemini e-Retail Sales Index’

The IMRG Capgemini Index, which was started in April 2000, tracks ‘online sales’, which we define as ‘transactions completed fully, including payment, via interactive channels’ from any location, including in-store. 

Over one hundred e-retailers now regularly contribute data to the IMRG Capgemini Index.

About IMRG

For over 20 years, IMRG (Interactive Media in Retail Group) has been the voice of e-retail in the UK. We are a membership community comprising businesses of all sizes – multichannel and pureplay, SME and multinational, and solution providers to industry.

We support our members through a range of activities – including market tracking and insight, benchmarking and best practice sharing. Our indexes provide in-depth intelligence on online sales, mobile sales, delivery trends and over 40 additional KPIs.

Our goal is to ensure our members have the information and resources they need to succeed in rapidly-evolving markets – both domestically and internationally.

www.imrg.org

About Capgemini

With more than 190,000 people, Capgemini is present in over 40 countries and celebrates its 50^th Anniversary year in 2017. A global leader in consulting, technology and outsourcing services, the Group reported 2016 global revenues of EUR 12.5 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience^TM, and draws on Rightshore^®, its worldwide delivery model.

Learn more about us at www.capgemini.com.

Rightshore^® is a trademark belonging to Capgemini