Online sales reach record high in 2010
Published: 21 January 2011
£58.8bn spent online last year, with December sales achieving a record high in the IMRG Capgemi e-Retail Sales Index.
Shoppers in the UK spent a total of £6.8bn online during December - equivalent to a whopping £111 per person, according to IMRG. Sales were up 7% on the previous month and by 25% on December 2009, with the Index reaching a record high.
The figures rounded off what was an impressive year for online retail sales growth, with a total of £58.8bn spent on e-commerce sites, resulting in an 18% jump in the Index and far outstripping original predictions of 13%.
Despite dire predictions for the run-up to the festive season, online retailers had a successful Christmas, reflected in above average year-on-year growth in nearly all sectors. The impressive performance can undoubtedly be attributed to the impending VAT hike in January and the fact that the UK experienced its coldest December on record for 100 years.
Rather than battle the snow and ice on the high street, shoppers appear to have chosen to stay home and buy online, as leading retailers reported huge grow thin their multi-channel proposition. Department store chain House of Fraser saw online sales jump 120% over the festive season, compared with the same period last year, while John Lewis and Marks and Spencer also reported exceptionally strong results.
For the coming year IMRG and Capgemi have predicted that total e-retail sales will reach £69bn, reflecting a further 18% growth in the index.
IMRG chief executive James Roper said: "December saw an incredible jump in online sales as a result of the weather conditions and it's reassuring to see that, despite the coverage of delivery problems, consumer confidence was not affected. Growing confidence and reliance on e-retail during times of adversity, whether that's harsh weather conditions or belt-tightening, as a result of the economy, has been reflected in the impressive growth throughout 2010."