E-commerce begins to suffer as downturn bites

Year-on-year growth in online spending slowed to just 14.8 per cent in September

E-retailers could be the latest sector to face leaner financial times, according to figures from industry body the Interactive Media in Retail Group and consultancy Capgemini released today.

The IMRG Capgemini e-Retail Sales Index found that year-on-year growth in online spending for September slowed to just 14.8 per cent, compared to 73.2 per cent for the same month in 2007.

September 2008 was also the third consecutive month in which year-on-year growth was below 20 per cent, according to the research.

However, the e-commerce market still remains buoyant with £4.8bn spent online last month. Clothing, footwear and accessories was the most popular category, seeing a 24 per cent increase in sales on the previous month.

"What the figures do not show is how the internet is influencing consumer
purchase decisions at a time where we are all seeking greater value for
money," argued Mike Petevinos, head of consulting for retail at Capgemini.

"The internet not only provides shoppers with the choice and data they need to make more informed decisions, it also provides retailers with the ability to communicate more targeted offers to consumers."