by Corinne
21. October 2009 17:15
Online spend has been hit recently by the UK postal strikes, contributing to a record low in its growth in September. Year-on-year growth stood at 8% for the year and month-on-month growth at 1.9%, an ‘unusually low rate’, according to the report by Capgemini.
Christmas fear
In the run up to Christmas, a crucial period for online retailers, UK consumers are still concerned that postal delays could prevent their purchases from arriving in the expected time period. The postal strikes ‘may have acted as a deterrent for online shoppers’, the report said, adding that it ‘will continue to be a key concern for e-retailers in the lead up to Christmas.’
The slow-down in growth was also attributed to warm weather, enticing people away from their computers, as well as heavy discounting on the high street. Internet-based clothes and electrical retailers are thought to be suffering the most.
Only a 'blip'
Capgemini described the recent results as a blip, commenting that the trend for online spend is expected to continue upwards, reaching around 15%, year-on-year.
‘The results for September show a slowdown in the growth of online spending but we view this as a temporary blip and expect growth rates to return to the 15% year-on-year trend we have seen over the last year’, said Capgemini UK head of consulting for retail Mike Petevinos.
‘The underlying trend is still that consumers are turning to the internet to make more informed purchase decisions,’ he added.
The managing director of John Lewis Direct, Robin Terrell, echoed this view. He said: ‘It’s clear that our customers are increasingly shopping online and enjoying the benefits of our online shopping experience more than ever. We are seeing growth online across all product lines, particularly fashion since the relaunch of our fashion site, but also encouragingly in home.’
Alternatives to Royal Mail?
John Lewis Direct is now working with other carriers to avoid disruption to its online deliveries. Amazon have announced similar action. Smaller businesses, though, particularly those sending lower value items, are finding the costs of alternative delivery services prohibitive.
