E-commerce sales in the United Kingdom rebounded in October, as an estimated 8.8 billion pounds ($13.76 billion) were spent online during the month. That’s the highest amount since December 2013 and an indication that the 2014 Christmas shopping season has officially started, according to the e-Retail Sales Index from technology consultancy Capgemini and U.K. e-retail association Interactive Media in Retail Group, or IMRG.
Online sales grew 14% in October compared with the same time last year, and 7% month-on-month, which is the highest level of growth between September and October in four years, IMRG says. Excluding the travel sector, U.K. online retail grew 16% year-over-year, resulting in year-to-date growth of 17%. The two groups do not release actual spending figures.
Sales transacted on smartphones and tablet devices in October grew 43% compared to the prior year and 11% versus September.
“The welcome return to double-digit growth last month follows the poor September results, when the online retail industry was adversely affected by the unseasonably mild autumn temperatures,” says Tina Spooner, chief information officer at IMRG. “E-retailers appear to be more confident in their growth predictions for the fourth quarter, shoppers are spending more per online transaction than last year and our latest research reveals almost half of consumers will order gifts online less than a week before Christmas Day.”
Several merchandise categories contributed to the growth, but online sales growth in the apparel sector made the most impact, IMRG says. After its lowest-ever annual growth in September (0.3%), sales were up 13.5% year-over-year, and accessories grew 63%. Lingerie recorded a similar performance, with a 40% jump over the same period last year.
Other sectors that performed well in October include electronics and beer, wine & spirits, which recorded year-over-year increases of 17% and 19%, respectively. Sales of garden products grew 65% annually.
October results revealed a growing disparity between the retail chains, or those with both a physical and online presence, and their online-only counterparts. While the chains recorded 18% year-over-year growth online, web only merchants experienced more conservative growth of 8%.
“Multichannel retailers have been shifting their investments into digital strategies over the last few years, including sophisticated CRM platforms,” says Alex Smith-Bingham, head of digital, consumer products and retail, at Capgemini. “This has enabled them to provide their customers with a joined-up and integrated offering across all of their channels, something which is clearly having a positive influence on sales. As we fast approach the busy Christmas period, it will be interesting to see whether the online-only retailers, which are typically able to compete in terms of cost, will be able to close this gap.”
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