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Wednesday, 20 October 2010 |
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 Come Christmas, £6.4 billion is expected to be spent online for the holidays. The Christmas peak is predicted to come early as savvy shoppers migrate online to spread the cost. The latest results from the IMRG Capgemini e-Retail Sales
Index reveal that British shoppers spent a total of £4.8 billion online during September (year-on-year growth of 24%), equivalent to £79 per person and bucking the recent fall in sales on the high street.
Sales of clothing, footwear and accessories have gone up 28% from September 2009. This impressive growth is attributed to consumers looking to keep spending in check by shopping online for the best deals.
 These figures are particularly significant when compared to the recent British Retail Consortium figures that identified a dramatic decline in non-food store sales. The disparity between these figures reveals a very interesting trend amongst British consumers, commented Chris Webster, head of retail consulting and technology at Capgemini. “Purse strings are getting tighter as concerns about the Government’s austerity drive begin to have an impact on consumer spending confidence. The rise in online spending is at the expense of high street sales and we may even see an early peak with shoppers looking to spread the cost of Christmas over several pay cheques”.
The idea consumers are looking to spread the cost of Christmas is supported by the huge jump in gift sales during September, which saw a 32% year-on-year increase and an 8% rise from August.
Based on 2010 Index results, which saw a year-to-date growth of 16%, IMRG and Capgemini have generated a new set of forecasts for Q4 2010:
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Total online spend in the fourth quarter will reach an estimated £17.4 billion, up from £15 billion in Q4 2009
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In December 2010 it is predicted that £6.4 billion will be spent online, up from £5.5 billion in December 2009
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The estimated total-spend for 2010 is £57.8 billion, up 16% from £49.8 billion in 2009.
Tina Spooner, Director of Information at IMRG, comments: “Despite a continuing decline in consumer confidence, the online retail market is growing ahead of our expectations, with a double-digit rise in yearly sales recorded in each quarter of 2010. Concerns over the impending Government spending cuts, VAT increase and job security, together with falling average households’ disposable income, are all contributing to driving this positive e-retail performance as consumers turn to online retailers to secure the best deals” The recent findings revealed that online sales have seen a steady year-on-year increase throughout 2010. In Q1 the figure stood at 11%, and in Q3 it had jumped to a significant 19%
Image: Fashion Elves
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