{"id":538116,"date":"2022-01-13T10:27:00","date_gmt":"2022-01-13T10:27:00","guid":{"rendered":"https:\/\/www.capgemini.com\/gb-en\/?post_type=press-release&p=538116"},"modified":"2025-03-10T10:19:36","modified_gmt":"2025-03-10T10:19:36","slug":"onlines-worst-ever-year-for-growth-was-actually-rather-good","status":"publish","type":"press-release","link":"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/onlines-worst-ever-year-for-growth-was-actually-rather-good\/","title":{"rendered":"Online\u2019s worst ever year for growth was actually rather good"},"content":{"rendered":"\t\t
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\n\t\t\t\t\t\t\t\t\t\t\tOnline\u2019s worst ever year for growth was actually rather good\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
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\n\t\t\t\t\t\t\t\t\t\tJan 13, 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
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\u2022 At +2.7%, 2021 was online retail\u2019s lowest ever rate of growth
\u2022 However, when indexed against 2019 instead of 2020, it was +39%
\u2022 The impact of the pandemic makes understanding 2021 complex<\/h4>\n<\/div>\n\n\n\n

LONDON UK \u2013 13 January 2022:<\/strong> The UK online retail market experienced the lowest rate of growth in 22 years of tracking. Online revenue in 2021 finished up +2.7% year-on-year against 2020, according to the latest figures from the IMRG Capgemini Online Retail Index, which tracks the online sales performance of over 200 retailers.<\/p>\n\n\n\n

Following the huge growth in 2020, when lockdowns pushed online retail revenue up +35% \u2013 a seven-fold increase on the rate from 2019 \u2013 the very high comparison meant most of the growth in 2021 was actually negative. This can be seen in the 3- and 6-month averages, which were -13% and -11% respectively. The first quarter of 2021 was up +60%, while the other three quarters were down -9% collectively.<\/p>\n\n\n\n

While this makes the performance of the online retail market sound poor, indexing 2021 against 2019 gives a very different picture. When analysed through this lens, the overall market was up +39% and the impact of the pandemic can be seen most clearly in some of the categories IMRG and Capgemini track. For example, electricals were down -14% in December and only secured +3% growth for 2021 as a whole when compared with 2020; but when 2021 is compared against 2019, growth was actually +100%. Meanwhile clothing \u2013 which was only up +1% in 2020 \u2013 is up +20% against 2019, so retailers in that category have done quite well, just not quite to the same extent that some other categories performed.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

From a monthly perspective, December continued the negative trajectory for online sales in 2021 with -6.5%. However, this performance was far greater than in November, which saw online sales face a sharper decline than expected with just under -20%. December\u2019s rate was the smallest decline since growth went into negative territory in May 2021, possibly due to sales being buoyed by concerns over an impending lockdown in December and high numbers having to isolate at home.<\/p>\n\n\n\n

Andy Mulcahy, strategy and insight director, IMRG<\/strong>: \u201c2020 was the most disruptive year that most people in business today have ever experienced. 2021 started out much the same, but as the year unfolded some sense of normality returned, although all these sudden shifts, jolts and lockdowns made understanding what was actually going on very difficult; the 2019 comparisons are testament to that.<\/em><\/p>\n\n\n\n

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\u201cOnline has been a major beneficiary of the pandemic, no question about that, and many retailers have seen their online revenues hit heights they never could have imagined two years ago. But 2022 looks set to be a year defined by inflation, the cost of living crisis and a general increase in the costs of doing business. The competition is more intense now, so gaining and keeping hold of customers against that challenging backdrop is going to require a lot of focus.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

Lucy Gibbs, Senior Manager, Retail lead for Analytics & AI,<\/strong> Capgemini<\/strong>: \u201cDespite the low year on year growth vs last year, 2021 has been another record year for online when compared to pre-pandemic sales.  The turbulence of the last two years has left its mark through the acceleration of online growth but also exposed areas of weaknesses for retailers, driving the need for operational resilience and agility. For the first quarter next year we are likely to continue to see negative growth in the year on year comparison as we go through a full cycle since the first UK lockdown. However, while nothing is certain, 2022 will hopefully see a more stable period of trading, albeit against a challenging economic outlook.<\/em><\/p>\n\n\n\n

This year we saw basket values grow significantly throughout the first half of the year where spend continued to be diverted from usual spending patterns, however dropped away in the second half as travel opened up;  It will be interesting to see which of the recent spending behaviours will revert quickly as the competition for share of spend increases,  and others that will stick; increased presence of digital experiences, delivery convenience, flexibility of working in different locations will all influence how future of retail will look.\u201d<\/em><\/p>\n\n\n\n

-ENDS-<\/strong><\/p>\n\n\n\n

About the \u2018IMRG Capgemini Online Retail Index\u2019<\/h3>\n\n\n\n

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

About IMRG<\/h3>\n\n\n\n

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. www.imrg.org<\/a><\/p>\n\n\n\n

About Capgemini<\/h3>\n\n\n\n

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 300,000 team members in nearly 50 countries. With its strong 50 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 2020 global revenues of \u20ac16 billion.<\/p>\n\n\n\n

Get the Future You Want | www.capgemini.com\/gb-en\/<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n

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