UK online retail sales up 15% in February

Online retail sales in the UK were up 15% in February, according to the latest figures from the IMRG Capgemini e-Retail Sales Index, but the rate of growth through smart phones has been slowing. Commenting on the 15% year-on-year increase, IMRG said:  “While on the surface this represents a strong month for online retail sales growth, there were some signs that sustaining this rate of growth throughout the whole year may be a challenge. One of the main drivers for online retail in recent years has been the growth of sales made through smartphone devices. For the past three months, however, the rate of growth through these devices has roughly halved year-on-year — in February 2016 it was +96% YoY, but in February 2017 it was just +57%.”

However, IMRG said that the slowdown in growth through mobile devices was specific to online-only retailers. For multichannel retailers (which have both an online and in-store offering), growth in sales made on mobile devices was actually up slightly year-on-year.

Justin Opie, managing director, IMRG, commented: “When it comes to smartphones though, the slowdown in sales growth does appear to be fairly dramatic. That said, rates of smartphone growth over the past two years have been very high, and that couldn’t continue indefinitely. The slowdown is specific to the online-only retailers — multichannel retailers are performing better than they have been through mobile, with greatly increased average basket values.

“So it remains positive, but perhaps with a cloud or two on the horizon. Smartphones have been the driver of mobile growth, and the slowdown could come to impact growth. And, of course, the ever-present uncertainty of Brexit looms large in 2017, with inflation rising and the widely-expected imminent triggering of Article 50 to come.”