Disappointing retail figures for Easter following flat first quarter

20th Anniversary Of First Online Sale

After a disappointing first quarter, Easter failed to deliver a boost to subdued online retail sales, with April recording sales growth of just 5% year-on-year.

According to the latest IMRG Capgemini eRetail Sales Index, this compares poorly to a very strong performance in April of last year (+12.5%) but continues an ongoing trend of subdued growth seen since the start of 2019.

During the first quarter of this year, the Index recorded average sales growth of 7.5%, which is the lowest quarterly growth since Q1 2015. Comparatively, the same quarter last year delivered growth of 14.5%.

Story continues below

In terms of channel spend, it has been an interesting year to date for mobile commerce.

As the channel has matured, there has been a slowdown in growth over the last four years. However, sales have picked up in the past two quarters and Q1 saw average growth of 12% versus last quarter.

In a complete reversal of fortunes, device sales for April however dropped by a sizable 20.5%, with the decrease more marked for online-only retailers (-39%) than multichannel (-8%).

Bhavesh Unadkat, principal consultant in retail customer engagement, Capgemini, said: “Easter 2018 fell between March and April so we were hopeful the figures for April 2019 would be favourable given the slow performance in March – this did not seem to be the case given the 5% increase YoY.

Strategy and insight director at IMRG, Andy Mulcahy, added: “2018 was a tough year for retail generally as the industry appears to be undergoing an accelerating period of transformation.

“Online sales were strong in the first half of the year, but growth rates dropped toward the end of the year culminating in subdued trading over the Black Friday and Christmas peak.

“2019 has seen a continuation of those trends, with clothing sales having a particularly difficult time; growth for this category has been low single-digit for six consecutive months for the first time since we started tracking it.

“There seems to be little sign of imminent improvement in shopper confidence; retailers will now be hoping that the warmer weather forecast over the coming weeks may stimulate greater demand, especially for those selling seasonal fashion lines.”

Tags : online
Joe Peskett

The author Joe Peskett

Leave a Response