E-commerce suffers as online sales growth hits 18-month low

Online sales growth slowed to 11.5 per cent in July, its lowest rate for 18 months, as Britain's sluggish economy finally took its toll on e-commerce, according to the latest IMRG Capgemini e-Retail Sales Index.

The monthly figures reveal the lowest year-on-year growth since January 2010, with £5.5bn spent online in July.

The electricals sector also performed badly, sales declining three per cent year on year despite a 17 per cent increase the year before.

Chris Webster, Capgemini's head of retail consulting and technology, explained that the figures show that the internet is not immune to the tough economic climate.

"Successful retailers will need to expand into multichannel and continue to improve customer experience throughout the online shopping process," he said.

"Furthermore, with such a successful first half of 2011, it was a tall order for online sales to maintain such rapid growth."

IMRG chief information officer Tina Spooner agreed that the strong performance in the first half of 2011 meant that it would always be an uphill struggle.

"Between July and December last year the Index recorded strong growth, with sales up 21 per cent year on year, and therefore over the coming months sales may well be slower, having come from a stronger base last year," she added.

"However, online retail continues to consistently deliver double-digit growth, despite the retail gloom on the high street."

Spooner suggested that consumers are increasingly holding off on bigger purchases, and researching across multiple online channels to make their money go further.

Source : Phil Muncaster – V3.co.uk
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