Online retail sales accelerating, IMRG Capgemini data shows

The retail industry shift onto the internet keeps accelerating, with the level of online retail sales growth having more than doubled in January compared to the same month last year.

The IMRG Capgemini e-Retail Sales Index leapt 15% year-on-year in January, compared to the 7% growth in January 2016.

As well as reflecting growing consumer confidence, IMRG and Capgemini said the strong performance suggested that retailers and their customers had adapted better to the Black Friday effect, which appeared to influence a lingering downturn in sales growth in the first quarter last year.

Sectors that enjoyed the best of the month included travel up 11% YoY, as usual at the start of the year, and clothing and electrical items both recorded 15% YoY growth, the electrical sector growth for 14 months.

But the 'dry January' trend among detectors saw alcohol sales endure their weakest performance since February 2014 with a 2% fall YoY, and a 65% decrease on December’s results.

The emerging disparity between sales made via smartphones and those on tablet devices saw growth for tablets of 13% compared to smartphone growth up 96%.

The retail sector will be relieved to see such impressive results, said Capgemini retail insight and data specialist Richard Tremellen.

"It’s a strong indication that consumer confidence is continuing to grow and puts us in a good position for a strong 2016.

“The sustained growth of sales via smartphones in January also demonstrates the progress retailers have made in developing the customer experience on their mobile platforms.”