Pace of e-commerce growth slows

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Figures measuring the levels of online spending in the UK published today shows a modest decline in monthly growth, despite increased sales overall.

The Capgemini Interactive Media in Retail Group (IMRG) Index found e-commerce sales topped £4.5 billion according in May. The average month-on-month rate of growth for total online sales is around 4.5 per cent, but between April and May growth increased by only 1.6 per cent.

Fluctuations in e-commerce sectors reveal shoe sales surged by 17 per cent, where the online clothing, footwear and accessories sector rose 4 per cent overall. But sales fell by 10 per cent in the electrical sector and UK shoppers also cut back their online spending on alcohol by 11 per cent.

Anthoula Madden, vice president at Capgemini UK’s Consumer Products and Retail Team, said: “Although online sales across the board are more robust than on the High Street, falling property prices and persistent news of a credit crunch are causing UK shoppers to become more careful with their disposable income.”

In addition, IMRG said that according to annual and seasonal patterns in online spending, sales should begin to climb more steeply in July and August again, after a similarly modest rise predicted for June, after which they would rise sharply in October, November and December towards the holidays.

But the figures still showed that the equivalent of £73 was spent online for every person in the UK in May – a year-on-year increase of 30 per cent.

By contrast, the Office of National Statistics today said overall retail figures for May in the UK were strong. It said the “warmest May on record” had boosted retail sales figures, where perhaps shoppers preferred to visit the High Street than shop at home.

The ONS figures supported the surge in shoe sales online, where textile, clothing and footwear stores saw a record rise of 9.2 per cent between April and May. And total sales volume rose by 3.5 per cent, which was up 4.2 per cent for the quarter on the same period last year.

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