{"id":538096,"date":"2022-02-14T10:10:00","date_gmt":"2022-02-14T10:10:00","guid":{"rendered":"https:\/\/www.capgemini.com\/gb-en\/?post_type=press-release&#038;p=538096"},"modified":"2025-03-10T10:16:00","modified_gmt":"2025-03-10T10:16:00","slug":"january-online-retail-growth-lowest-ever","status":"publish","type":"press-release","link":"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/january-online-retail-growth-lowest-ever\/","title":{"rendered":"January online retail growth lowest ever"},"content":{"rendered":"\t\t<div class=\"wp-block-cg-blocks-hero-press-release\">\n\t\t\t<header class=\"header-hero-press-release\" role=\"main\" id=\"main-content-press-release\">\n\t\t\t\t<div class=\"container\">\n\t\t\t\t\t<div class=\"hero-press-release\">\n\t\t\t\t\t\t<div class=\"hero-press-release-content-wrapper\">\n\t\t\t\t\t\t\t<div class=\"row\">\n\t\t\t\t\t\t\t\t<div class=\"col-12\">\n\t\t\t\t\t\t\t\t\t<div class=\"header-title\">\n\t\t\t\t\t\t\t\t\t\t<h1>\n\t\t\t\t\t\t\t\t\t\t\tJanuary online retail growth lowest ever\t\t\t\t\t\t\t\t\t\t<\/h1>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"header-description\">\n\t\t\t\t\t\t\t\t\t\t<p><\/p>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"header-date\">\n\t\t\t\t\t\t\t\t\t\t<span>Feb 14, 2022<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/header>\n\t\t<\/div>\n\t\t\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-11 col-lg-10 offset-md-1 offset-lg-1\"><div class=\"article-text article-quote-text\">\n<ul class=\"wp-block-list\">\n<li>January saw the lowest rate of online retail growth ever recorded at -24.4%; this growth falls well below the 3-, 6-, and 12-month averages of -16.4%, -13.7% and -2.8%<\/li>\n\n\n\n<li>Despite this, average spend was up over \u00a320 between last month and January 2021<\/li>\n\n\n\n<li>With the cost of living going up, and inflation at +4.8%*, retailers may face tough times this year<\/li>\n<\/ul>\n\n\n\n<p><strong>LONDON UK \u2013 14<sup>th<\/sup>&nbsp;February 2022.<\/strong>&nbsp;At -24.4% Year-on-Year (YoY), January saw the lowest rate of online retail growth ever documented in 22 years of tracking, according to the IMRG Capgemini Online Retail Index, which tracks the online sales performance for over 200 retailers.<\/p>\n\n\n\n<p>2021 ended on +2.7% total growth in the market, which was the lowest annual growth rate ever. Continuing this pattern, January 2022\u2019s drop is a direct result of retailers competing against a staggering growth rate of +61.8% from January 2021, when the UK was in a lockdown \u2013 causing online channels to experience a significant boom. Fast-forward 12 months and not only are retailers up against this steep growth rate, but restrictions have been lifted, enabling consumers to carry out more in-person shopping if they wish.<\/p>\n\n\n\n<p>Breaking this down further, the average basket value (ABV) was actually up \u2013 rising to \u00a3115 in January after dropping to \u00a3106 in December. In the first half of 2021 the ABV saw huge increases, but it had been falling since August. January was the first month since then that it has started to go back up again.<\/p>\n\n\n\n<p>At a category level, fashion saw the highest rate of growth in January, with clothing up +5.4% YoY, and womenswear (+25.2%), menswear (+16.0%) and footwear (+19.4%) all reporting positive performances. The same was not true, however, for the rest of the categories IMRG tracks. Those with the poorest growth included skincare, which was down -48.2%, makeup (-45.7%), and electricals (-36.7%).<\/p>\n\n\n\n<p><strong>Andy Mulcahy, Strategy and Insight Director at IMRG:<\/strong><em> \u201cThe first quarter of 2021 had a severe lockdown in place which drove huge online growth, so the year-on-year comparisons for the early months in 2022 are going to be harshly negative as a consequence. This can make it seem like online sales are in freefall, whereas actually it is just a natural rationalisation of the 50-60% increases we saw this time last year.\u201d &nbsp;<\/em><\/p>\n\n\n\n<p><strong>Lucy Gibbs, Senior Manager, Retail lead for Analytics &amp; AI,&nbsp;Capgemini: <\/strong><em>\u201cJanuary was mixed story for retail; our Online Index reported the largest YoY fall in sales ever, and the high street claimed the opposite.&nbsp;This is due to the now familiar Yin Yang effect on YoY revenues when comparing to last year\u2019s lockdown store closures. As we emerge from the pandemic, the annual results will start to normalise and 2022 will hopefully bring a much more stable trading period, however the outlook still remains uncertain as we realise the fall out of economic and logistical challenges from the last two years.<\/em><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe drop in orders this month is greater than revenue as ABV has increased by 24%. This could be an early indicator of increased prices, reflecting the ongoing supply chain disruption and underlying cost challenges.&nbsp;The major purchase index has also fallen four points (GSK) in January, as economic pressures add to consumer concerns.&nbsp;Capturing share of wallet amongst increasing bills and also pent-up demand for travel, events and eating out will continue to prove to be the focus as we navigate 2022.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-about-the-imrg-capgemini-online-retail-index\">About the \u2018IMRG Capgemini Online Retail Index\u2019<\/h2>\n\n\n\n<p>The IMRG Capgemini Online Retail Index, which was started in April 2000, tracks \u2018online sales\u2019, which we define as \u2018transactions completed fully, including payment, via interactive channels\u2019 from any location.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-about-imrg\">About IMRG<\/h2>\n\n\n\n<p>For over 20 years, IMRG (Interactive Media in Retail Group) has been the voice of online retail in the UK. We are a membership community comprising businesses of all sizes \u2013 multichannel and pureplay, SME and multinational, and solution providers to industry. We support our members through a range of activities \u2013 including market tracking and insight, benchmarking and best practice sharing. Our indices provide in-depth intelligence on online sales, mobile sales, delivery trends and over 80 additional KPIs. Our goal is to ensure our members have the information and resources they need to succeed in rapidly-evolving markets \u2013 both domestically and internationally.&nbsp;<a href=\"https:\/\/www.imrg.org\/\">www.imrg.org<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-about-capgemini\">About Capgemini<\/h2>\n\n\n\n<p>Capgemini is a global leader in partnering with companies to transform and manage their business by harnessing the power of technology. The Group is guided everyday by its purpose of unleashing human energy through technology for an inclusive and sustainable future. It is a responsible and diverse organisation of over 325,000 team members in more than 50 countries. With its strong 55-year heritage and deep industry expertise, Capgemini is trusted by its clients to address the entire breadth of their business needs, from strategy and design to operations, fuelled by the fast evolving and innovative world of cloud, data, AI, connectivity, software, digital engineering and platforms. The Group reported in 2021 global revenues of \u20ac18 billion.<\/p>\n\n\n\n<p>Get The Future You Want |&nbsp;<a href=\"http:\/\/www.capgemini.com\/gb-en\/#_blank\" target=\"_blank\" rel=\"noreferrer noopener\">www.capgemini.com\/gb-en\/<\/a><\/p>\n\n\n\n<p>* Source: <a href=\"https:\/\/www.ons.gov.uk\/economy\/inflationandpriceindices\" target=\"_blank\" rel=\"noreferrer noopener\">Office of National Statistics<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n<div class=\"wp-block-cg-blocks-cg-block-related-content\"><section class=\"relatedContentBlock\"><div class=\"container\"><div class=\"row\"><div class=\"content-title col-12 col-md-8\"><h2 class=\"related-content-heading\">Related News<\/h2><\/div><\/div><div class=\"row relatedContent\"><div class=\"col-lg-4 col-md-6 col-xs-12\">\n\t\t\t\t\t\t\t<div class=\"box\">\n\t\t\t\t\t\t\t\t<a aria-label=\"Read more about Global millionaire population jumps by nearly 2 million in 2025, driven by strong stock market 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