UK online sales exceed £130 billion in 2016, fuelled by sales growth on smartphones
- Online sales during 2016 up 16% compared with 2015
- £25bn spent online in the run up to Christmas, between 13th November and 24th December
- Sales made on smartphones drive growth, up 47% YoY in December
17th January, 2017 – £133bn was spent online with UK retailers in 2016, the latest figures from the IMRG Capgemini eRetail Sales Index have revealed*. This was £18bn more than the amount spent online in 2015 and meant that the Index registered growth of 16% 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 (see chart below).
For 2017, IMRG and Capgemini forecast e-retail will record a further 14% growth.
The strong performance of online retail in 2016 was fuelled by the continued growth of sales made on smartphones. In December, sales made via smartphones were up 47% year-on-year (YoY). In contrast, sales made on tablets were down 3% YoY**. In December, smartphones accounted for 54% of mobile device sales, with tablets accounting for the other 46%. This is a huge uplift on December 2015, when smartphones accounted for 39% of mobile device sales.
Across sectors, looking at 2016 as a whole, accessories and lingerie witnessed the biggest increase in online sales, up 38% and 33% respectively. This was followed by gifts, up 26%, and footwear, up 21%, all of which exceeded the Index’s average growth rate. However, the health and beauty sector had a year to forget, with online sales in the category tumbling 3%.
Looking at the Christmas period, which is defined as running from 13th November through to 24th December, £25 billion was spent online. This was up an impressive 16% on the amount spent in 2015*** as consumers continued to shop for presents online.
Bhavesh Unadkat, Principal Consultant in Retail Customer Engagement Design, Capgemini: “2016 was a turbulent year with a number of predictions for retail and beyond going against the status quo. Regardless, it was still a record breaking year for online sales - up 16% on 2015. Few would have anticipated the decline in sales made on tablets, but with sales made through overall mobile devices generating over 50% of visits, combined with the sweeping growth of both visits and conversions from smartphones, mobile continues to head towards being the number one sales channel.
“2017 will be filled with a level of uncertainty depending on the progress and impact of Brexit, however with the investment retailers are making in improving the customer shopping experience, I am sure it will be another record breaking year for online sales.”
Justin Opie, managing director, at IMRG: “Following a below-expectation year in 2015, online sales growth has shot back up to an extent that seemed highly unlikely at the start of the year. There are two key factors driving this. The first is that Black Friday became an ‘online’ event in 2015, and this seems to have had a lasting effect on people’s shopping behaviour and preferences – our Index has recorded strong growth for online sales ever since that day. The second is that sales through smartphones are continuing to grow at a very strong rate, which is increasing the times and places in which people can browse and engage with online retailers.”
*Figure is calculated using data from the IMRG and Capgemini eRetail Sales Index classification
**Excluding travel participants
***2015 Christmas period defined as 15th November through to 26th December 2015
Index growth rates:
About the ‘IMRG Capgemini e-Retail Sales Index’
The IMRG Capgemini Index, which was started in April 2000, tracks 'online sales', which we define as 'transactions completed fully, including payment, via interactive channels' from any location, including in-store.
Over one hundred e-retailers now regularly contribute data to the IMRG Capgemini Index, including A. Hume Country Clothing, Amara, Appliance House, Arcadia Group (Burton, Top Man, Top Shop, Dorothy Perkins, Evans, Wallis, Miss Selfridge), Argos, Ask Direct, ASOS.com, B&Q, Berry Bros & Rudd, Blacks, Boden.co.uk, Boots, Brora, BT Shop, Buyagift.com, Carphone Warehouse, Charles Tyrwhitt, Clarks, Clinkards, Crocus.co.uk, Damart, Debenhams, Deckers, Dunelm Mill, Effortless Skin, Ethical Superstore, Feelunique.com, Firebox, First Choice, Freemans Grattan Holdings (Freemans, Grattan, Look Again, Kaleidoscope, Curvissa, Swimear365, Witt International UK), Get The Label, Greenfingers.com, House of Fraser, Jack Wills, JD Sports, JD Williams, John Lewis Partnership, Liz Earle, M and M Direct, Made In Design, Majestic Wine, Marks & Spencer, Millets, Missguided, Moss Bros, Naked Wines, NaturalCollection.com, New Look, Next, Notonthehighstreet.com, Oasis, PetPlanet.co.uk, PetsPyjamas.com, Pink Boutique, Prezzybox.com, QVC, River Island, Rocket Dog, Schuh, Scotlight Direct, Scott, Screwfix.com, Shoe-Shop.com, Shoetique.co.uk, Shop Direct Home Shopping (Littlewoods, Very, Very Exclusive), Serenata Flowers, Shoetique, Silentnight, Size, Sofa and Home, Sparkling Strawberry, Spirit Boutique, Sunshine.co.uk, Tesco.com, The Body Shop, The Great Gift Company, The White Company, TUI UK, Turton Wines, Universal Music, Waitrose, Within Home, Woods of Shropshire, Woolovers & Wynsors World of Shoes.
For over 20 years, IMRG (Interactive Media in Retail Group) has been the voice of e-retail in the UK. We are a membership community comprising businesses of all sizes – multichannel and pureplay, SME and multinational, and solution providers to industry.
We support our members through a range of activities – including market tracking and insight, benchmarking and best practice sharing. Our indexes provide in-depth intelligence on online sales, mobile sales, delivery trends and over 40 additional KPIs.
Our goal is to ensure our members have the information and resources they need to succeed in rapidly-evolving markets – both domestically and internationally.
With more than 180,000 people in over 40 countries, Capgemini is a global leader in consulting, technology and outsourcing services. The Group reported 2015 global revenues of EUR 11.9 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.
Learn more about us at www.capgemini.com
Rightshore® is a trademark belonging to Capgemini