{"id":567499,"date":"2022-05-10T07:31:00","date_gmt":"2022-05-10T07:31:00","guid":{"rendered":"https:\/\/www.capgemini.com\/gb-en\/?post_type=press-release&#038;p=567499"},"modified":"2025-03-10T10:04:54","modified_gmt":"2025-03-10T10:04:54","slug":"aprils-results-suggest-online-retail-boom-is-over","status":"publish","type":"press-release","link":"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/aprils-results-suggest-online-retail-boom-is-over\/","title":{"rendered":"April\u2019s results suggest online retail boom is over"},"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\tApril\u2019s results suggest online retail boom is over\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>May 10, 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-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\/aprils-results-suggest-online-retail-boom-is-over\/\" 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\/aprils-results-suggest-online-retail-boom-is-over\/\" 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\">Online retail sales growth for April fell to -12%, a significant improvement from -25.7% the month before, but nowhere near a return to pre-pandemic form<br>This is the first month in two years where Index growth is not skewed by lockdown comparisons, giving a clearer indicator of growth against the 3-, 6-, and 12-month averages (-21.9%, -17.5% and -13.3% respectively)<br>Month-on-Month (MoM) growth was up +3.8%, which is slightly better than expected<br>Average Basket Volume (ABV) reached a record high at \u00a3146, up \u00a312 from last month<\/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<pre class=\"wp-block-code\"><code>                &lt;p&gt;&lt;strong&gt;LONDON UK \u2013 10&lt;sup&gt;th&lt;\/sup&gt; MAY 2022: &lt;\/strong&gt;At a time of rising inflation, online retail sales fell -12% Year-on-Year (YoY) in April. That is according to the latest IMRG Capgemini Online Retail Index, which tracks the online sales performance of over 200 retailers. With last month\u2019s results representing the first time in two years that the Index was not skewed by pandemic lockdown comparisons, expectations for a return to pre-Covid patterns had been high. However, the results showed there was no actual growth in online sales \u2013 with last month\u2019s performance simply mirroring April 2021\u2019s growth of +12%. This mirroring was also evident in the weekly results, with growth in week four of April 2022, for example, at -10% against +10% for the same week the year previous.&lt;\/p&gt;<\/code><\/pre>\n\n\n\n<p>Looking at this more closely, there are signs of the current economic situation exerting an influence on the average basket value (ABV), which reached an all-time high at \u00a3146 in April, \u00a33 above the previous pandemic record set in August 2021. With rising supply chain costs feeding through into product prices and cost of living increases showing no signs of slowing down, shoppers are taking longer to make purchase decisions and retailers are having to rely more heavily on discounting to stimulate activity \u2013 particularly for smaller goods. However, the ABV also indicates that many consumers are still willing to purchase larger ticket items, or are buying in bulk in order to get better value.<\/p>\n\n\n\n<p>At a category level, after their highs of 2021 electricals and beauty have seen poor performances for a few months now (-17.8% and -27% respectively during April 2022). The ABV in electricals has also been falling for several weeks, suggesting that retailers in that category might be discounting very heavily. On the flip side, clothing is an example of a category seeing good post-pandemic sales, recording +4.2% YoY growth in April \u2013 a solid result against huge growth of +51.4% in April 2021.<\/p>\n\n\n\n<p><strong>Andy Mulcahy, strategy and insight director, IMRG:<\/strong> <em>\u201cThroughout the pandemic, there was much speculation as to what the \u2018new normal\u2019 might be once everything has settled down again. After two years of huge volume increases online, it would seem that growth is now over \u2013 this is not just a reflection of the pandemic effectively coming to an end in many people\u2019s minds, the new phase of higher costs and bills is creating very unpredictable patterns of behaviour among shoppers. Many retailers report sluggish response to activity and erratic spending, and it feels like this is only the start of a tough year for UK shoppers.\u201d<\/em><\/p>\n\n\n\n<p><strong>Lucy Gibbs, senior manager, retail lead for analytics &amp; AI,&nbsp;Capgemini: <\/strong><em>\u201cDemand for certain categories became less predictable during the pandemic due to external factors and changes in behaviours and lifestyles. As we start to move on, we are seeing some signs of a return to norm, however it is clear that shifting priorities around new cost pressures and economic factors will also influence future demand patterns. If we project forward the pre-pandemic trends we can infer which categories are still overperforming; home and garden and health and beauty are still well ahead of where we would expect them to be despite tracking negative YOY growth for this month. Clothing is approximately in line with where we would expect, picking up after losing out in the pandemic.<\/em><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cAs uncertainty continues to reign, this reenforces that retailers and brands will need to remain agile and resilient \u2013 listening to customer needs, where consideration will likely now focus on price point, necessity and value, to create a standout experience and drive other factors to maintain loyalty.<\/em><em>\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\/\" target=\"_blank\" rel=\"noreferrer noopener\">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 340,000 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<\/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 Capgemini unveils Google Cloud AI Enterprise Hub to accelerate agentic AI enterprise transformation\" href=\"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/capgemini-unveils-google-cloud-ai-enterprise-hub-to-accelerate-agentic-ai-enterprise-transformation\/\" 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