Pre-Black Friday Lull Affects Online Sales
- Online retail sales growth lower than average in October
- IMRG Capgemini e-Retail Sales Index data shows year-on-year growth of 12.6%
- Growth rate lower than the last 3 months’ average (14.3%) and 5-year October average (14%)
- High street poor performance usually benefits ecommerce, but not this time
- Conversion rate down to 4.4%, below three-year average of 4.8%
- Average Basket Value highest in nine years at £94
- Shoppers spending more per visit due to ongoing discounting
Online retail sales growth in October showed a year-on-year increase of 12.6%, according to the IMRG Capgemini e-Retail Sales Index, but it was lower than the average growth rate for the past three months (14.3%) and the five-year October average (14%). The high street’s poor performance in October would typically boost ecommerce sales, yet online retail spend remained subdued. The conversion rate (percentage of site visitors completing a purchase) was 4.4%, higher than last October (4%) but lower than the three-year average (2013-2015) by 0.4 percentage points. This suggests that shoppers were focusing on research before the biggest discounting event. The Average Basket Value reached £94, the highest for October in nine years, indicating more items per visit due to ongoing discounts. Justin Opie, IMRG’s managing director, said, ‘October was an average month with 12.6% growth, similar to Jan-Oct year-to-date rate. As conversion rate fell, it indicates consumers expect the best deals during Black Friday period.’ Bhavesh Unadkat, Capgemini’s retail customer engagement principal consultant, added that Black Friday and Autumn Budget could impact consumer confidence in November.
Factuality Level: 8
Factuality Justification: The article provides accurate information about online retail sales figures and includes relevant data from the IMRG Capgemini e-Retail Sales Index. It also offers insights from industry experts and makes predictions based on the data presented.
Noise Level: 3
Noise Justification: The article provides relevant information about online retail sales figures and offers insights into the behavior of shoppers during October, but it lacks a comprehensive analysis or in-depth exploration of the factors contributing to the pre-Black Friday lull. It also makes assumptions about November’s performance without providing strong evidence.
Financial Relevance: Yes
Financial Markets Impacted: Online retail sales and high street performance impact financial markets through the stocks of companies involved in these sectors.
Financial Rating Justification: The article discusses year-on-year growth rates, conversion rates, and average basket value for online retail sales, which are all relevant to financial topics. It also mentions the potential impact of Black Friday and the Autumn Budget on consumer confidence, which can influence stock prices and market trends.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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