January Blues Fail to Deter Online Shoppers

February 20, 20183min

Online retail sales were up 13.9 percent year-on-year (YoY) in January, according to the latest figures from the IMRG Capgemini e-Retail Sales Index.

With rainfall above average in January, and the lowest January high street footfall recorded in five years, consumers turned to online shopping. Even the expected post-Christmas month-on-month decline in sales from December to January, which came in at -20.4 percent, was less than the five year average of -24.1 percent.

With January sales still an important market stimulus, the electricals sector performed well relative to recent trends, growing +4.4 percent YoY. Its performance sits starkly against last year’s 12 month average (Jan 17 – Dec 17) of -3.0 percent YoY and January 2017’s YoY growth figure of -8.5 percent.

Similarly, sales growth for the clothing sector was up +16.8 percent YoY, its strongest January growth since 2013. Footwear, menswear, and womenswear growth were broadly in line with the five year average, with YoY growth of +13.3 percent, +10.4 percent, and +6.9 percent respectively.

This solid start to the year was secured in spite of a dip in the overall market conversion rate to +4.3 percent from +4.5 percent last year, continuing the decreasing trend as customers browse more before purchasing. Sales via smartphones are also increasing at a lower rate than last year, at +39.3 percent YoY in January, while growth through tablets suffered a decrease in YoY growth of -10.0 percent.

Justin Opie, managing director of IMRG said:

“14 percent growth for January represents a strong start to the year, arguably even surprisingly so. The economic climate remains challenging, with inflation remaining at 3 percent and an interest rate rise anticipated over the next few months. The impact on retail was very apparent in January, with several very large retailers announcing store closures and job cuts – high street footfall also fell to a five-year low for January. Yet online appeared to benefit from that, with the index recording the lowest month-on-month decrease between December and January in five years. It may be that, as we enter 2018, we are seeing signs of an acceleration of the general move over to online, putting pressure on those retailers with large store portfolios to sharpen their focus on rolling out their digital strategy.””

CXM Editorial Team

CXM Editorial Team

Published for all CX professionals, the digital Customer Experience Magazine is packed full of industry news, blogs, features, video bites and international stories all focusing on customer experience. CXM will help you learn what makes an outstanding customer experience that wins both awards and the hearts of customers. And sometimes we share some cool music as well.

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Customer Experience Magazine is the online magazine packed full of industry news, blogs, features, reports, case studies, video bites and international stories all focusing on customer experience.



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