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8 June 2009
IMRG Capgemini Index Special 9th Anniversary Report Now Available
Online retail sector still healthy despite slowing growth
E-retail sales have grown over 5,000% since the Index launched in April 2000
Estimated £200 billion spent online in the UK since 2000
Between April 08 and April 09 the Index grew 14%
Online retail sales grew by an average 25% in 2008
June 8, 2009
The IMRG Capgemini Index has recorded a staggering growth of over 5,000% since it launched in April 2000. During the same period the ONS Retail Sales Index, which tracks UK high street sales, recorded a growth of just 21% (Chart below).
In the past 9 years UK internet shoppers have spent an estimated £200 billion online, rising from £0.8 billion in 2000 to an estimated £43.8 billion last year. Annual growth was strongest in financial years 2000, 2001 and 2002, since when the Index has recorded an average annual growth of 41%. More recently, the Index grew by 1197 points between April 2006 and April 2007 (54%) and 1009 points between April 2007 and April 2008 (30%). Between April 2008 and April 2009 the Index shows the UK e-retail market grew by 14%, indicating a record period of low growth.
Both the clothing and the electricals sectors have recorded consistently strong growth since the Index launched. The clothing sector has continued to grow rapidly, increasing 1990% since February 2001. This sector consistently outperformed the total e-retail market and all other online sectors in terms of Index value throughout 2008 and was the fastest growing online sector last year. The latest e-Customer Service Index survey by eDigitalResearch and IMRG also confirms a positive outlook for the online fashion industry. Just under half of consumers surveyed said they are currently spending the same or more on fashion despite the recession, with 76% intending to continue spending the same or more online during the coming year.
The electricals sector has been particularly strong in the past 3 to 4 years, recording a growth of 877% since February 2002. Sales of beer, wines & spirits have steadily been increasing over recent years, showing seasonal spikes during November and December. The beer, wines & spirits Index has grown by 455% since February 2002. The online gifts sector has been quite volatile since it launched in September 2002, showing a large spike at the end of 2006. However, overall this sector has remained fairly static, growing just 19% since 2002. The overall amount spent on health & beauty products has not increased in the 31 months the Index has tracked this sector. There are, however, seasonal spikes in November and December which also show year-on-year growth. The lingerie Index was broken out in April 2007 and looked promising in the first year, recording a growth of 73%. However, between April 2008 and April 2009 online lingerie sales decreased by 26%.
Tina Spooner, Director of Information at IMRG said: “When we entered the 21st Century internet shopping was in its infancy. Nine years later e-retail has not only become a channel of retail choice for consumers, but a way of life for many. Since 2000 internet shopping has soared by over 5,000% with UK consumers spending an astounding £200 billion during this period. Internet shopping is clearly the bright spot in the UK retail sector but this industry is still young and has great potential for further growth”.
About the ‘IMRG Capgemini e-Retail Sales Index’
The IMRG Capgemini Index tracks 'online sales', which we define as 'transactions completed fully, including payment, via interactive channels' from any location, including in-store. These sales are predominantly internet-based today, but the Index remains ready to record e-retail sales conducted via whatever interactive channels the market may embrace in the future.
We are delighted to announce that we now have over 100 e-retailers regularly contributing data to the IMRG Capgemini Index, including Airport Parking & Hotels Ltd, Adili.com, Arcadia Group (Burton, Top Man, Top Shop, Dorothy Perkins, Evans, Wallis, Miss Selfridge), ASOS.com, Beautique.com, BeCheeky.com, Binends.com, Black Essentials, Blacks, Boden.co.uk, Boohoo.com, Boots Direct, Brora, Buyagift.com, Carphone Warehouse, Charles Tyrwhitt, Clarks, Cloggs, Comet, Co-operative Travel, Crocus.co.uk, Dabs.com, Damart, Daxon, Debenhams, Dobbies, e-flowersUK.co.uk, Ethical Superstore, Figleaves.com, Firebox, First Choice, Freemans Grattan Holdings, Furniture123, Game.net, Gameplay.com, Getting Personal.co.uk, GreatValueJewellery.com, Greenfingers.com, Home & Cook, Interflora, JD Sports, J D Williams, Jack Wills, Jason Shankey, John Lewis Partnership, Ladderstore.com, La Magia, La Redoute, lastminute.com, Lighting-Direct, LK Bennett, Lookfantastic.com, M and M Direct, Made in Sheffield, Marks & Spencer, Millets, Monster Travel, Musto, Naked Wines, New Look, Next, Peacocks, Perfect Handbags, PetPlanet.co.uk, PIXmania, Prezzybox.com, QED-UK, QVC, R C Roland, Redcats UK, Redfoot Revolution, Retro36, Richer Sounds, Rubber Sole, Scales Express, Shoe-Shop.com, Shop Direct Home Shopping, Schuh, Serenata Flowers, Shudoo, Slurp.co.uk, Sunshine.co.uk, Tesco.com Wine, Tesco Electrical, The Fragrance Shop, The Health Supermarket, The Jewellery Channel, The Sunday Times Wine Club, TUI UK, Turton Wines, Vertbaudet, Vie at Home, Waitrose, Wallace Sacks, Wilkinson Hardware & Wine Hound
Notes to Editors
About IMRG
IMRG (Interactive Media In Retail Group) is the industry body for global e-retail. Formed in 1990, IMRG is setting and maintaining pragmatic and robust e-Retail Standards to enable fast-track industry growth, and facilitates its community of members with practical help, information, tools, guidance and networking. Consumers can be confident when dealing with IMRG Members because all have committed to operate using methods that are Honest, Decent, Legal, Truthful and Fair, and have undertaken to not bring the industry into disrepute. The strength of IMRG is the collective and co-operative power of its members.
For further information please contact:
market@imrg.org
Tina Spooner – 01895 675861 (tina@imrg.org)
David Smith – 07970 237078 (david@imrg.org)