e-retailers hit by High Street discounting
According to the IMRG Capgemini e-Retail Sales Index, online spending growth slowed to a record low in September as heavy discounting on the High Street dragged consumers away from their computers.
Furthermore, above average temperatures during the month, as well as the threat of postal strikes have all contributed to the slower growth.
With a national postal strike scheduled for this week, the report says customers are being more cautious ahead of Christmas and this is discouraging consumers from shopping online.
Online sales were £3.9 billion in September, up 1.9% from the previous month – an “unusually low rate”, according to the report.
However, on a positive note, sales growth is expected to improve to year-on-year levels of about 15%.
Mike Petevinos, head of consulting for retail at Capgemini UK, “The underlying trend is still that customers are turning to the internet to make more informed purchase decisions.”