Online retailing had its worst month of sales growth in November, according to IMRG Capgemini Online Retail Index – Retail Times
As the threat of the Christmas lockdown prompted consumers to leave their homes to socialize and shop last month, online retail sales posted their weakest growth on record, falling -19.8% in year-over-year. This is according to the latest IMRG Capgemini Online Retail Index, which tracks the online sales performance of more than 200 retailers. While this compares to a strong November 2020 (+ 36.2%), the monthly numbers (MoM) were equally negative – showing a rise of just 40.4% from the + 50% that would typically be expected from October to October. November period.
Looking further into the results, there is evidence that consumers buy less often and spend less when they do, with a conversion rate down from -20% year-on-year to + 3.3% and an average cart value (ABV ) falling to £ 123 (from its 2021 peak of £ 149). With sales on the rise, it is perhaps not surprising that among types of retailers, multi-channel brands suffered the most – with their sales falling -23.4% compared to just -13.4% for online retailers only.
Meanwhile, all bar apparel categories saw double-digit negative growth – with giveaways in particular dropping a whopping -46.4%. In a month where Black Friday spending previously focused on electricity, this category posted the second-lowest result at -29.2%.
Lucy Gibbs, Management Consultant – Retail Lead for Analytics & AI, Capgemini: “The drop in online sales this year is not unexpected, but monthly figures suggest that overall spending has been even more subdued. Multi-channel retailers were the hardest hit, down -23.4%, but online-only retailers also suffered, down -13.4% due to lower overall online traffic.
“While a return to in-person shopping took a large portion of the expense, other factors such as supplier shortages and delivery interruptions also caused retailers to release and dilute some of the offerings, which could be at the origin of the decrease in conversion of 20%. % in November.
Andy Mulcahy, Director of Strategy and Insight, IMRG: “In retail we are often inclined to focus on the negatives, but we have to admit that the performance in November was very poor. The most concerning thing was that traffic was the problem, buyers just weren’t visiting retailer sites in their usual volumes. To some extent, this could be explained by people returning to department stores, but the next few weeks will be very interesting in that regard. There seems to be a ‘get it in before we’re locked up’ attitude right now, but as of next week people won’t want to go anywhere to avoid having to self-isolate over Christmas. We will be, from a retail perspective, in an all-round lockdown, which will really skew the trading numbers. “