Online spending rises during February

Online spending rose by ten per cent year-on-year during

February, new figures show, however this is only half of the growth seen during the same month last year.

February’s growth in e-tail sales was the slowest since January 2010 however and was down on the 16 per cent year-on-year rise recorded during the previous month, as fashion sales in particular proved to be somewhat subdued.

Compared to the same period last year fashion sales were up just nine per cent, the fourth consecutive month of low growth, whereas last February revenues in the sector jumped 34 per cent. Internet retailing is still proving to be one of the major drivers of growth for the sector at present but it appears that year-on-year increases will now be less dramatic than they had been due to the market maturing.

Tina Spooner, Chief Information Officer at IMRG, pointed out that online-only businesses have improved their performance in recent months and claims that this is to do with an increasing trust in the online channel.

“Although growth in e-retail sales was lower than expected in February, it has to be considered in the context of the 20 per cent rise seen in February 2011, so double-digit growth is still a positive result,” Spooner said.

“It appears evident from the sales growth recorded by online-only/catalogue retailers over recent months that consumer confidence in the online channel is increasing. “These results suggest consumers who may have initially looked to trusted high street brands when shopping online for the first time are now becoming more confident in purchasing from pure-play e-retailers.”