IMRG and Capgemini predict Christmas and final quarter online sales

Internet sales will be up 15% this year compared to last say the e-Retail Sales Index authors, way down on the 54% growth seen last year -- but encouraging nonetheless

A total of £13.16 billion will be spent online by British shoppers in the run up to Christmas -- equivalent to £215 for every person in the UK -- say IMRG and Capgemini, an increase of 15% in year on year sales but a slowdown in growth when compared to the 54% year on year increase seen in 2007.

Key findings in November's analysis include:

• Online sales of clothing, footwear and accessories will be worth £1,260 million during Q4 2008, with sales bucking general economic trends and rising more than 25% year-on-year.
• Online sales of beer, wine and spirits will be worth £233 million during Q4 2008. During the first week of December alone, £24 million worth of alcohol will be bought via the internet.
• Monday 8th December will be the biggest UK online shopping day of 2008, with sales worth £320 million. 42% of those sales will take place outside of traditional shopping hours, either before 9am or after 6pm.
• The peak shopping hour is expected to take place over lunch, between 1pm and 2pm, on Monday 8th December when £28 million will be spent online during this single hour. This is double the amount spent online during the peak hour of 2006, from midday on Monday 11th December.

Looking back on October, IMRG and Capgemini say their figures indicate year on year growth was 12.7%, the lowest year on year growth since December 2004.

"British shoppers will beat the crunch with internet prices this Christmas, spending more than a billion pounds each week in the run-up," says James Roper, IMRG's CEO. "The internet is well established as one of consumers' most powerful economic weapons against tough times. Retailers and suppliers will be under extreme pressure to price competitively this year, so there will be a lot of volatility out there -- and fantastic bargains -- that the internet uniquely enables canny shoppers to find and grab before anyone else gets the chance."

Sarah Clark (Web Editor) Internet Retailing November 11 2008