Online, which accounts for 10% of overall sales in the United Kingdom, grew 7.4% year over year in Q1.

Online sales growth hasn’t been enough to offset declining store sales to start 2017 in the United Kingdom.

Data from the British Retail Consortium/KPMG Sales Monitor shows online sales, which include sales via catalog and telephone, increased 7.4% in the first quarter, while overall retail sales dropped by 0.8%, dragged down by a 3.0% year-over-year drop in store sales. These figures reflect sales of non-food products. The 7.4% e-commerce growth rate comes on the heels of a year-over-year online sales growth rate of 9.5% during the fourth quarter.

Retailers will be hoping Easter boosts retail sales in April

E-commerce accounted for 10% of U.K. retail sales during the quarter, according to BRC and KPMG.

The first quarter posted the slowest three-month total average growth since May 2011, and it brings the 12-month total average growth down to 0.3%, the lowest since April 2012.

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“The slowdown in non-food growth persists and it now stands at its lowest three-month average for nearly six years,” said Helen Dickinson, CEO of the consortium. “Meanwhile, food sales continue to outperform non-food sales as shoppers focus their spending on essential items.”

Paul Martin, head of retail at KPMG, says total sales during the first quarter may have been hurt by the timing of Easter, which falls on April 16 instead of in March, like it did last year. Total sales were down 0.2% year over year in March, and comparable-store sales declined 1.1% compared with March 2016.

“Retailers will be hoping Easter boosts retail sales in April, whether its shoppers making the most of the holiday or those choosing to spruce up their homes,” Martin said.

The first quarter numbers show that British retailers face mounting challenges, but e-commerce growth continues to be a bright spot, says Hugh Fletcher, global head of consultancy and innovation at  e-commerce consultancy Salmon.

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“With the emergence of events such as Black Friday week, and the more traditional peak trading times of Easter and Christmas, there is no doubt that retailers can prosper in the hugely competitive sector,” Fletcher said in response to the BRC-KPMG data. “The monthly stats are unsurprising–vendors have to realize that they cannot remain stagnant and expect to catch up with the likes of natural e-retailers like Amazon, ASOS, Boohoo etc.,” he says.

Amazon.com Inc. is No. 1 in the Internet Retailer 2016 Europe 500; ASOS Plc Holdings is No. 22 and and Boohoo.com UK Ltd. is No. 166.

As e-commerce grows, retailers must embrace a multichannel strategy that provides the customer with the best possible service, Fletcher said.

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“In a fast-paced industry, which is constantly evolving, technology-driven ideas will present shops with the opportunity to flourish and secure a larger share of shoppers who are increasingly craving an immediate, reliable and flexible shopping experience,” he said.

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