E-commerce top-line growth continues

UK consumers apparently embraced the January sales, spending £4.5 billion online last month.

The Interactive Media in Retail Group (IMRG) Capgemini e-Retail Sales Index has found electricals and clothing led year-on-year growth of 75 per cent during January or the equivalent of £74 was spent online for every person in the UK.

The index, which tracks online sales defined as 'transactions completed fully, including payment, via interactive channels' from any location, including instore as contributed by 60 member 'e-retailers,' also showed top-line growth that reverses the decline in sales through this channel during recent months.

Year-on-year sales increased by 73 per cent in September 2007, which fell to 66 per cent in November and then 49 per cent in December. Despite this, full-year sales increased to £46.6 billion, up 54 per cent on the £30.2 billion IMRG recorded for 2006.

Anthoula Madden, Capgemini UK's consumer products and retail team vice president, said: "The index shows that January sales are as large a phenomenon online as they are on the high street, with the overall online market continuing to show strong growth."

The sectors that offered the most popular items for online bargain hunters in January compared to the same time last year were electrical items and clothing, with 38 per cent and 32 per cent growth respectively.

And a possible sign of restraint and good intentions after the excesses of festive season was reflected by the comparatively smaller, 9.8 per cent growth in sales of beers, wines and spirits online and the 18 per cent rise in online spending on health and beauty.

"Our members report that they have seen better than ever growth and larger retailers have had a particularly successful month," said Jo Evans, IMRG managing director.

John Bevan, managing director of IMRG member lastminute.com in the UK, added: "January is traditionally a busy time for the travel industry so to see bookings growth of 10 per cent is tremendous, especially as travel is one of the most mature online sectors."

"Traffic to the site has been equally impressive as more and more people look online for their travel needs. We experienced increased traffic and bookings on Christmas Day and this trend has continued throughout the New Year and into February," he concluded.

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