According to the latest figures from IMRG Capgemini e-Retail Index Show, in the United Kingdom online retail growth has returned to its double digit growth in September. If you will compare the same period last year, online retail enjoyed a 12% increase. The Index has also grown by 10% in the last quarter of 2015.As the online retail sector prepares for the holiday season, the year-to-date growth remains at 10%.
The biggest growth in the online retail sector was registered in the home sector department where there was an increase of 47% year-on-year. After a disappointing 2015, the electronic sector saw a spike of 6.4% in September mainly due to the release of iPhone6. A Summer Bank Holiday that fell in the first week on September boosted September performance and helped the Index grow by 8%. However, growth is still lower than what was expected.
Another reason for growth in the retail growth is the Indian summer that swept many parts of the country. Parents had to buy back-to-school clothing which apparently helped the clothing sector to gain a 12% year-on-year growth. Sales made through mobile devices whether the smartphone or the tablet computer saw an annual increase of 41% in September. Year-to-date growth was 43% for 2015 compared to 46% for the same period last year.
While it is reassuring to see the Index return to its double digit growth, it is not as strong as the sector would have liked. Retailers are actually expecting a better performance with Rugby World Cup, the warm weather and the Bank Holiday. Christmas is fast approaching and Black Friday is just around the corner. It would be rather interesting to watch British shoppers intentionally hold back on the heavy discounting that the season brings.
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