Belt-tightening causes online-shopping growth to stumble
Mike Petevinos, Head of Consulting for Retail at Capgemini UK, says how important it is to acknowledge the impact of faltering consumer confidence on online sales.
19 September 2008
Publication
Despite notching up year-on-year growth of 15.1 per cent last month, online retail sales are beginning to falter.
In a sign that credit crunch paranoia may be beginning to bite, the month-on-month figures for internet shopping showed web sales dipping 9.8 per cent, prompting the question of whether the channel is finally feeling the slump that has been plaguing the high street this year.
The figures, which come from the latest IMRG Capgemini e-Retail Sales Index, are due to a seasonal variation, according to the researchers, but there are definite signs the economic downturn is starting to affect online buying behaviour.
Footwear grew by seven per cent to reflect back-to-school purchasing while the best performing category for the month was accessories with 18 per cent sales growth month-on-month, suggesting buyers are economising with smaller items to complement existing wardrobes.
Apparel as a whole fell by 18 per cent.
In a statement, Capgemini UK head of consulting for retail, Mike Petevinos, said: “The results for August demonstrate the maturing of e-retail online sales are starting to mirror more closely seasonal retail patterns, experiencing a dip in August for the second year running. It’s important to acknowledge the inevitable impact of faltering consumer confidence, with shoppers opting for lower cost accessories in preference to big ticket items.”
To read the full article at Silicon.com, click here.
Related links:
Click here to read the press release last issued on the IMRG Capgemini e-Retail
Sales Index
