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UK e-commerce stays strong after Christmas rush

by Dave Neal

17 Mar 2011

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Impressive UK online Christmas sales continued into the new year, according to figures from industry body the IRMG.

It was a great year for UK e-commerce last year, with retailers reporting sales of almost £60bn, which was an 18 per cent increase against 2009.

Sales stayed strong at the end of last year despite the Royal Mail strike and delivery problems caused by bad weather, and this trend continued into the new year.

The Interactive Media in Retail Group (IMRG) said that February saw some £4.9bn spent in online stores, a 20 per cent increase against the same time last year. This equates to a spend of £79 per head, the group said.

These consistently strong sales, which include January's £5.1bn spend, are in contrast to the poor performance seen on the high street, the group added, and signal the continued gains enjoyed by the UK e-retail industry.

"UK shoppers spent a staggering £10bn online during January and February, a clear indicator of how strong consumer confidence is in the online channel even during a period in which high street spending is down," said Tina Spooner, IMRG's director of information.

Beer and spirit sales made the biggest gains in the latest IMRG rankings, and here sales increased by 37 per cent in January and 25 per cent in February.

"February was a good month for online retail, up 20 per cent on the same period last year," said Chris Webster, head of retail consulting and technology at Capgemini.

"This increase is on the back of a very solid second half to 2010 and while some of the growth can be attributed to a weak start last year, nearly £5bn spent online is very significant and in stark contrast to the weak sales experienced by the traditional bricks-and-mortar retailers."

Other strong sellers were clothing, footwear and accessories, which increased their sales by six per cent, but home and garden sales dropped by 25 per cent.

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