In 2016, we recorded a notable shift in the IMRG MetaPack Delivery Index over the peak Christmas trading period. The month-on-month order volume growth between November and December 2016 was just +4.5% – far lower than the equivalent in 2015.
Looking at our latetst data, active retention rates for the clothing sector are lagging behind the rate for total online retail. What are the factors behind this trend and is there anything retailers can do to improve?
We’ve seen a 67% increase in online retail customer retention rates in the last 6 years. This trend, while remarkable, is perhaps not surprising. If a retailer can persuade existing customers to keep buying, the purchases that follow don’t come with the margin-eating cost-per-acquisition of new customers.
The IMRG Capgemini eRetail Sales Index has revealed the extent to which retailers slashed prices on Black Friday weekend, with the Index recording tumbling average basket values for numerous online retail sectors.
£133bn was spent online with UK retailers in 2016. The results demonstrate an exceptional performance for online retail in 2016, exceeding IMRG and Capgemini’s forecast of 11% growth for the year and unexpectedly reversing a trend of declining growth rates over the past few years.