Online sales maintain high street lead

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Online sales have once again outperformed the ailing UK High Street, according to the latest figures, despite the recession starting to bite.

The latest e-Retail Sales Index compiled by internet trade body IMRG and Capgemini UK found internet shopping sales grew 13 per cent last month, compared to the same period last year.

Furthermore, it showed that growth had been consistent for the last eight months. At the same time, the high street has suffered some major casualties as consumers rein in their spending a result of ongoing economic uncertainty.

But IMRG also pointed out that the recession was starting to be felt online too, as sales dropped 11 per cent from January to February of this year.

A closer look at online sales split out by sector reveals Brits got back into the festive spirit to contribute to the underlying growth in online sales. After a decline in January, sales in beers, wines and spirits rose by 30 per cent in February.

Sales of gifts online also saw a healthy increase over the days before Valentine’s Day. And the clothing, footwear and accessories, and electrical sectors continued to expand at a greater rate than the online market overall.

Tina Spooner, IMRG director of information, said that the recession was playing into the hands of online retailers, as it is influencing consumer behaviours.

“Recent research found that 87 per cent of UK consumers are making changes to their spending patterns, with many preferring to plan purchases and avoid impulse buying," said Spooner.

"Internet shopping allows consumers to achieve these goals, while at the same time offering the convenience, choice and competitive pricing that shoppers demand.”

Mike Petevinos, head of consulting for retail at Capgemini UK, added that the decline in growth seen at the beginning of this year proved the internet as a sales channel was not immune to the recession.

But he said: “Consumers are still turning to the internet to make their purchase decisions and ensure their disposable income goes further.”

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