Weak growth reflects strong trading in December
Online sales growth hit a trough in January thanks to a strong December trading period.
Online sales grew just 5 percent year-on-year to £4.3bn, according to the IMRG Capgemini e-Retail Index – the slowest growth ever recorded by the index.
Month-on-month online sales dropped 22 percent in line with normal post-Christmas trends.
Capgemini vice-president of retail Chris Webster said: “While annual growth for e-retail was slow in January, December was a very strong month for the industry. Last January, e-retailers’ sales were buoyed up by heavy discounting and promotions that were necessary to sell stock left over from poor Christmas trading resulting from the impact of the recent move into recession.”
The IMRG said it expects online sales to grow 14 percent year-on-year in 2010 to £57bn.