Friday, November 24, 2017

2016 sees renewed growth for online retailers

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Online retailers have enjoyed a strong start to the year, as the “Black Friday Effect” of 2015 failed to repeat itself.

The latest figures from the IMRG Capgemini e-Retail Sales Index reveal 15% annual growth in the online retail sector; more than double the 7% rise recorded in January last year. The biggest winners included Clothing and Electrical items which saw 15% year-on-year sales growth.

According to Capgemini, the increase in sales growth is indicative of the absence of the “Black Friday Effect”: the idea that Black Friday 2014 led to a “lingering downturn in sales growth in Q1 of last year”.

 “As we settle into the New Year, with the busy festive period behind us, the retail sector will be relieved to see such impressive results,” said Richard Tremellen, Retail Insight and Data Specialist at Capgemini. “It‘s a strong indication that consumer confidence is continuing to grow and puts us in a good position for a strong 2016.”

The Index also revealed a staggering disparity in payment methods. Sales made via smartphones saw an increase of 96%, whilst tablet sales grew by 13%. Chief Information Officer at IMRG Tina Spooner cited the “design shift toward larger screens, together with improved retailer mobile sites” as reasons for this growth.

“The latest Index results reveal a strong start to the year for the UK online retail industry, with annual growth reaching the second-highest rate recorded over the past 14 months,” Spooner continued. “The 15% growth in January is more than double the growth rate observed in the same month last year, when the knock-on effect of Black Friday continued into the early part of 2015, and is ahead of IMRG and Capgemini‘s 2015 growth forecast.”