Online sales set to grow ahead of Christmas, says IMRG

Online sales are back on track following a disappointing September, with annual growth of 14% in October. 

This is according to the latest figures from the IMRG Capgemini e-Retail Sales Index which found an index growth of 7% month-on-month, the highest level of growth between September and October for four years.

Excluding travel, the UK online retail sector grew 16% year-on-year, resulting in a year-to-date growth of 17%, according to the index.

An estimated £8.8bn was spent online in October, the highest market value since December 2013. The performance was also mirrored on mobile, with sales made on smartphones and tablet devices in October recording 43% annual growth and an 11% increase on September.

IMRG reported that the index was boosted by a number of key sectors, one of which was the accessories sub-sector which saw a growth of 63%.

The index also revealed a growing disparity between the multichannel retailers, those with both a physical and online presence, and their online-only counterparts. Whilst multichannel recorded a solid 18% year-on-year growth, the pure-play merchants saw more conservative growth of 8%.

Alex Smith-Bingham, head of digital, consumer products and retail at Capgemini, said: “Multichannel retailers have been shifting their investments into digital strategies over the last few years, including sophisticated CRM platforms. This has enabled them to provide their customers with a joined up and integrated offering across all of their channels, something which is clearly having a positive influence on sales.

“As we fast approach the busy Christmas period, it will be interesting to see whether the online only retailers, which are typically able to compete in terms of cost, will be able to close this gap.”