{"id":538746,"date":"2020-02-27T19:53:00","date_gmt":"2020-02-27T19:53:00","guid":{"rendered":"https:\/\/www.capgemini.com\/gb-en\/?post_type=press-release&#038;p=538746"},"modified":"2025-03-10T10:16:38","modified_gmt":"2025-03-10T10:16:38","slug":"online-sales-fall-flat-in-january-following-late-2019-surge","status":"publish","type":"press-release","link":"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/online-sales-fall-flat-in-january-following-late-2019-surge\/","title":{"rendered":"Online sales fall flat in January following late 2019 surge"},"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\tOnline sales fall flat in January following late 2019 surge\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 27, 2020<\/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-intro-para undefined section section--intro\"><div class=\"intro-para\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/online-sales-fall-flat-in-january-following-late-2019-surge\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/online-sales-fall-flat-in-january-following-late-2019-surge\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><h2 class=\"intro-para-title\"><strong>LONDON UK \u2013 February 21, 2020:<\/strong> After a surprisingly strong Christmas sales period, retailer hopes of a continuation of such growth into 2020 were dashed in January, with online retail sales growth dropping back to -0.4% Year-on-Year (YoY). That\u2019s according to the latest <em>IMRG Capgemini Online Retail Index,<\/em> which tracks the online sales performance of over 200 retailers<em>.*<\/em> In a month where almost 10,000 jobs were <a href=\"https:\/\/www.bbc.co.uk\/news\/business-51258659\">reportedly<\/a> lost within the sector, these figures indicate potentially troubling times ahead for retail over the next twelve months as the otherwise subdued demand from 2019 continues.<\/h2><\/div><\/div><\/div><\/div><\/section>\n\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<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Breaking&nbsp;down&nbsp;the results,&nbsp;there were a few positive stories at a category level. After a consistently strong 2019, beauty continued to be one of the best performers in January, though its growth of +7.1% was relatively subdued in comparison to its average growth of +23.3% in 2019. Meanwhile both home and clothing also saw increases of +6.1% and +3.1% respectively.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Unfortunately, that was largely where the positivity ended. In perhaps the strongest indication of the Black Friday effect and the impact of end-of-year discounting on the traditional January sales period, electricals sales plummeted from their first positive performance in over two years in December 2019 (+11.9%) to -17.7% in January.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Andy Mulcahy, strategy and insight director, IMRG<\/strong>: <em>\u201c2019 was an odd year for online sales in the sense that demand was weak for most of the year \u2013 particularly over the summer \u2013 but then growth throughout November was very strong and December was better-than-expected too. It\u2019s hard to see why that kind of peak trading would cap such a poor year, so the question was whether that represented a turnaround in demand \u2013 given the greater certainty emerging in the political environment during that period \u2013 or an anomaly, probably driven by discounting.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>\u201cIt seems that we now have our answer. Flat growth to start the year, against a modest growth rate of +7% in January 2019 (which itself was the lowest for January in three years) suggests that it wasn\u2019t just uncertainty over Brexit that was suppressing spend; the real reasons are likely to be multiple and diverse, requiring fundamental appraisals of retailer propositions to ensure they are well set up for success in this fast-changing market.\u201d<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Lucy Gibbs, managing consultant \u2013 Retail Insight,<\/strong> <strong>Capgemini<\/strong>: <em>\u201c<\/em><em>A flat January has fallen below expectations after the brighter festive period at the end of last year, despite consumers reporting feeling more upbeat about the UK economic prospects.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>\u201cInterestingly, budget retailers were seeing more favourable results and outperformed the mid-market players in the clothing and health and beauty sectors, which had positive results this month.&nbsp; For clothing this has been an increasing divide over the second half of 2019.&nbsp; Consumers are remaining cautious as we start the year and are seeking value for money. Combine this with a rise in demand for sustainable shopping, will the gradual increase in consumer confidence be reflected in spending patterns as the year goes on?\u201d<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>-ENDS-<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>About the \u2018IMRG Capgemini Online Retail Index\u2019<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">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, including in-store.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>*Please note from January 2020 the Index no longer includes data from the travel sector<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>About IMRG<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">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 \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 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 \u2013 both domestically and internationally. <a href=\"http:\/\/www.imrg.org\/\">www.imrg.org<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>About Capgemini<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A global leader in consulting, technology services and digital transformation, Capgemini is at the forefront of innovation to address the entire breadth of clients\u2019 opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. It is a multicultural company of over 200,000 team members in more than 40&nbsp;countries. 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