Tuesday, 12 November 2013

Online Sales Rise 8.7% Despite 'Damp' Consumer Spending

Online sales rose 'strongly' in October despite poor weather dampening consumer spending, according to Barclaycard.

The rise in online sales compared favourably to previous months even as overall spending rose just 1.9 per cent year-on-year. Spending in stores rose just 0.3 per cent.

Stronger overall growth in the previous two months had been cited as evidence of renewed optimism. But poor weather was blamed for sluggish sales in October - and probably contributed to comparatively healthier online growth as shoppers stayed at home.

However, it was the fourth month of single-digit online sales increases suggesting the arrival of slightly cooler levels of growth. Online spending now accounts for 20.6 per cent of overall spending, up 1.2 per cent on last year. Some experts, including the IMRG, have detected signs that growth may be growing despite an extra boost from the use of tablets and smartphones.

Barclaycard measures about half of all spending, through its own cards and through monitoring payments it processes through other operators.

The increase online follows last month's rise of 6.7 per cent and an 8.5 per cent increase in August.

Clothing led the way in October with online sales of womenswear rising 41 per cent compared to last year as department stores such as Debenhams and House of Fraser and large clothing chains such as Marks & Spencer got to grips with the internet. Menswear grew 34 per cent and DIY sales increased 24 per cent.

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