December snowfall dampens e-commerce sales

E-commerce sales at the end of last year were held back by delivery problems caused by the inclement weather, according to new figures from KPMG and the British Retail Consortium.

The report said that heavy snow had caused logistical problems for providers, and had created caution among prospective online buyers.

Total retail sales, taking into account new store openings, increased by just 1.5 per cent, which compares badly against the six per cent in the same period last year.

"Snow disrupted sales patterns and meant lost trade for some," the report said, adding that larger items had fared the worst.

E-commerce sales, which typically boom during the season, grew against November's numbers by 18 per cent, compared to over 26 per cent the year before.

Stephen Robertson, director general of the British Retail Consortium, explained that the period had failed to meet its expectations, despite the potential for a busy December.

"The growth of online sales of non-food goods continued its rapid upward trajectory. An 18 per cent increase in the value of sales is impressive, but Christmas did not accelerate growth in 2010 as it had done the previous year," he said.

Robertson added that the snow encouraged more shoppers to switch to online purchasing, but that this was not enough to kick start what was already a difficult month for online retailers.

"It is clear that any gains from snow-bound shoppers switching to the internet were more than outweighed by the damage to sales from the delivery difficulties which forced some retailers to restrict online ordering at times during the month," he said.