British membership community IMRG, "the voice of e-retail" in the UK, has published its findings for October. The report e-Retail Sales Index show bleak e-commerce sales figures for the UK. A market that is leading in the global e-commerce community.
Shoppers Waiting for Black Friday
The e-Retail Sales Index was started in 2000 and tracks UK's online sales. With a registered growth of just 8,9 percent year-on-year for October, it is the lowest growth for that month in 15 years.
Pure play e-commerce stores however did better than multichannel retailers. In October online-only retailers saw sales increase 18 percent and multichannel retailers recorded just 4 percent.
-The ‘pre-peak lag’, where shoppers hold off from making purchases in expectation of bagging a discount over the Black Friday peak, may have started far earlier than last year – as October 2015 growth was significantly down on October 2014, said Tina Spooner, Chief Information Officer at IMRG.
Lingerie Sold Well
Clothing, garden and electrical sectors take a big hit, explains IMRG, as consumers withhold spending in run up to Black Friday.
- Interestingly though the sectors that typically stock lower-cost items – including accessories, lingerie, footwear, health & beauty and gifts – continue to perform strongly, while some sectors stocking higher-cost items (electricals and garden) recorded negative growth in October, said Tina Spooner.
According to the report consumers are delaying their spending and waiting for lower prices in November.
Heavy Discounting Effect
Last year e-commerce in the UK saw a big sales boost during Black Friday that had implications afterwards in form of significantly lower sales the following months.
- Given the level of discounting we saw in 2015 a slow-down in sales during the run up to Black Friday is natural, said Alex Smith-Bingham, Head of Digital, Consumer Products and Retail at Capgemini.