• JOIN US
  • SIGN IN
  • ADVISERS
  • ABOUT
  • OUR TEAM

The Industry

  • HOME
  • NEWS & INSIGHT
    • BUSINESS
    • CSR & Sustainability
    • RETAIL & ETAIL
    • Start-ups & Innovation
    • TECH & MEDIA
  • FASHION
    • TRENDS
    • BRANDS & DESIGNERS
  • MEMBERS
    • JOIN US
    • IND-DIRECTORY
  • EVENTS
    • SAVE THE DATE
    • IND-TV
  • PEOPLE
    • MOVES
    • EXPERTS
    • INTERVIEWS

Posted In Business, News & Insight, Retail & Etail

UK online retail sales growth slows amid general election uncertainty

Lauretta Roberts | 18th May 2017

 0

UK online retail sales grew 13.9% year on year in April, but while on the face of it that looks like strong growth, it was slower than expected and only up 4.3% on the previous month, according to the newly released IMRG Capgemini e-Retail Sales Index.

The index points out that with Easter falling in April this year (as opposed to March last year), a higher rate of growth might have been expected and a key factor in the slower than expected growth could be Prime Minister Theresa May’s calling of snap general election for June. Data for previous election years shows a clear dip in sales of clothing and footwear in the month leading up to the vote.

IMRG Capgemini

Clothing and footwear sales in election and non-election years

During April clothing sales grew 10.5% – which again appears to be solid growth, but it tracks below recent performance and both menswear and womenswear experienced negative growth; at -7% and -5% respectively.

“A year-on-year growth of just 13.9% in a month that also included Easter is yet another sign of slowdown within the retail industry. This is also demonstrated in the month-on-month increase of only 4.3% – again, despite the falling of Easter – where April is always a strong month. The slowdown is further proved through investigating the clothing sector, which increased 10.5% on the year, but showed the slowest year-on-year April growth rate for six years,” explained Bhavesh Unadkat, principle consultant in retail customer engagement design, Capgemini.

IMRG managing director Julian Opie admitted it may seem “odd” to be disappointed by a 13.9% sales growth but when other factors were taken into consideration, there was evidence that the suppressed growth was linked to falling consumer confidence. He also warned that confidence would continue to be affected through the forthcoming Brexit negotiation after the election.

“Looking at historical data, it seems that elections exert an influence on spending patterns and we may expect that to continue into May due to the uncertainty that comes with these events. We then enter the period of official Brexit negotiations with the EU, when the progress of those discussions will likely be reflected in shopper behaviour. That could be a period of considerable turbulence for retailers due to the potential for currency fluctuations, shifting shopper confidence and rising inflation,” Opie said.

The IMRG Capgemini Index was started in April 2000 and tracks ‘online sales’, which it defines as ‘transactions completed fully, including payment, via interactive channels’ from any location, including in-store. More than 100 e-retailers regularly contribute data to the index.

Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Pin on Pinterest
Pinterest
Tags / Brexit, Capgemini, ecommerce, etail, IMRG, Retail

About Author / Lauretta Roberts

Lauretta Roberts is managing director and Editor-in-Chief of The Industry, having acquired the business along with business partner Antony Hawman in July 2015. She is also the former director of brand & propositions of trend forecaster WGSN and a former editor of Drapers magazine.

You Might Also Like

Finery

Finery names John Hind as CEO

9th August 2017
Burberry

Bailey to step down as Burberry CEO, Gobbetti steps up

11th July 2016
Farfetch

Farfetch commences its $5bn Initial Public Offering

6th September 2018
Previous Post
Next Post

Our FREE Newsletter

Trending on The Industry

  • Wrangler
    In Pictures: Wrangler launches “Icons” collection at pop-up shop in Soho
  • Ted Baker
    Former England striker Peter Crouch joins Ted Baker as “T for Tall” ambassador
  • Environmental Audit Committee
    In-depth: Fixing Fashion – MPs set out their vision on how to clean up the industry
  • Athletic Propulsion Labs
    The Industry Interview: Adam Goldston and Ryan Goldston, co-founders, Athletic Propulsion Labs
  • Victoria Beckham
    Victoria Beckham comes out on top for social media value during London Fashion Week

Connect with us

THEINDUSTRYFASH TWEETS

Premium fashion brand @ted_baker signs professional footballer @petercrouch as a "T for Tall" ambassador joining former Olympic swimmer Mark Foster who is a long-standing ambassador the line for men who are 6ft 3in and taller #menswear https://t.co/SeiAZMs3jR

Reply on TwitterRetweet on TwitterLike on Twitter

We interview Adam and Ryan Goldston, the entrepreneurs behind Athletic Propulsion Labs, whose trainers were banned by the NBA for being too good and snapped up by some of the world's most prestigious retailers for the same reason #sportswear #entrepreneurs https://t.co/EM2PbiRqiS

Reply on TwitterRetweet on TwitterLike on Twitter
Load More...

Find us on Facebook

ON INSTAGRAM @THEINDUSTRYFASHION

  • New asos GenZ label COLLUSION smashes sales targets  Read
    1 day ago by theindustryfashion New  @asos  Gen-Z label COLLUSION smashes sales targets . Read more at TheIndustry.fashion . . .  #collusion   #fastfashion   #everyonetogether 
  • A new TheIndustryfashion is coming soon! Sign up to our
    7 hours ago by theindustryfashion A new TheIndustry.fashion is coming soon! Sign up to our daily newsletter to be the first to know . . .  #businessmedia   #fashionnews   #retailnews   #businessmedia 
  • In The Know Anna Shearer Influencer and founder lefashionfetish
    1 day ago by theindustryfashion In The Know: Anna Shearer, Influencer and founder  @lefashionfetish  . Read our interview at TheIndustry.fashion . . . .  #influencer   #fashionbusiness   #digitalmarketing 
  • victoriabeckham comes out on top for social media value during
    8 hours ago by theindustryfashion  @victoriabeckham  comes out on top for social media value during London Fashion Week . Read more at TheIndustry.fashion . . . .  #lfw   #catwalks   #victoriabeckham   #fashionnews 
  • Dont miss your chance to hear the story of one
    1 day ago by theindustryfashion Don’t miss your chance to hear the story of one of the brightest entrepreneurs in fashion in an intimate and exclusive setting, as well as the chance to network with peers over Champagne in the beautiful Perception Bar of W London. . Book your ticket now for £45+VAT at TheIndustry.fashion . . . .  #businessnetworking   #fashionevents   #entrepreneurevents   @threadformen 

Connect with The Industry

About Us

About
Join us
Events

CONTACT US

Contact
Our team

Tags

#WattsWhat Advertising Asos Boohoo Brexit British Fashion Council Burberry Caroline Rush Catwalks Collaborations Debenhams Department stores E-commerce ecommerce etail Farfetch Footwear GUCCI H&M High street House of Fraser John Lewis London Fashion Week Luxury Marketing Marks & Spencer media menswear Mike Ashley Next property Retail Selfridges Shopping malls social media Sports Direct Sportswear Start-ups Sustainability Technology The Industry Topshop Trends Vogue YOOX NET-A-PORTER Group

Recent Comments

  • LOVstay on Karl Lagerfeld reported to have died at the age of 85
  • Paula Renee on Victoria Beckham bans exotic skins from AW19
  • Bob Rocket on Superdry shares tank on back of profits slump

Archive

© Copyright Magnus Media & Events Ltd. 2018

7ads6x98y