UK online retail sales continued a slow start in 2015 with only 9% growth year-on-year in March
meaning single-digit growth for each month during the first quarter of this year, which hasn’t
happened in any other quarter before, according to the British e-commerce association IMRG.
In Q1 2015, e-retail sales growth in the UK reached only 7% year-on-year, compared to a 17% rise
during the same period a year ago, the latest figures from the IMRG Capgemini e-Retail Sales Index
revealed. This is the first quarterly single-digit growth recorded by the index so far.
“However, this is on the back of a strong performance in Q1 last year when annual growth stood
at 17% – the strongest Q1 growth seen since 2011,” IMRG explained.
In a monthly comparison with February, UK online retail sales showed double-digit growth of 11%
in March.
Last month’s growth was mainly driven by mobile sales made either via a tablet device or a
smartphone which increased 9% on the previous month and showed spectacular year-on-year growth of
46%, compared to March 2014. During the first quarter of 2015, sales via mobile devices also rose
by remarkable 38% compared to Q1 2014.
UK e-retail growth was additionally boosted by Mother’s Day on 15th March, with items within the
gift sector surging 20% year-on-year and reaching an impressive 48% peak during the week leading up
to that day (w/c 9th March).
The travel sector also delivered a strong performance in March, with 18% annual growth compared
to only 6% recorded at the same time last year.
Tina Spooner, Chief Information Officer, at IMRG said: “There are a number of factors that may
be influencing this apparent slowdown in online retail sales growth – such as a maturing market or
uncertainty around the upcoming election.
“One particular point that does stand out from the latest figures however is that travel growth
for Q1 2015 (+19%) was the strongest we’ve seen for that quarter since we started tracking this
sector in 2009 – this suggests that consumers may be feeling more confident in how the economic
recovery is progressing and spending out on holidays again, diverting that potential expenditure
away from retail sites.
“This may be further evidenced by the Q1 performance of the high ticket item sectors,
electricals (+1%) and home and garden (-6%) as people may be investing their money in more
entertainment-focused activities rather than home improvement.”
Adgild Hop, Principal, Head of Retail Consulting, Capgemini, highlighted March’s return to
growth, after a ‘rather unsteady start to the year’, indicating that further growth is expected in
the months to come.
“The influence of sales via a tablet or smartphone, which are in effect the main vehicles for
growth in the index, is a clear indication of just how valuable mobile platforms have become to the
retail customer experience. If it weren’t for mobile, the overall trends for e-retail would be
neutral at best. Retailers therefore need to expect that as online propositions become increasingly
commoditised, the secret to differentiation and competitive advantage increasingly resides in the
mobile customer experience,” Hop concluded.
