E-commerce struggles amidst heavy discounting
- Lowest ever growth for online retail sales in October
- E-commerce sales grew by 6.2%
- Clothing sales up 5.2%
- Beer, wine and spirits sales up 4.8%
- Home sales up 13.6%
- Online only retailers performed better than multichannel retailers
- Growth attributed to heavy discounting
Online retail sales have experienced their worst growth ever in October, according to the IMRG Capgemini Online Retail Index. E-commerce sales increased by 6.2%, surpassing the three-month (5.0%), six-month (4.5%), and 12-month rolling averages (5.1%). However, it fell short of the five-year average (10%). Despite some categories showing positive growth, such as clothing (+5.2%) and beer, wine, and spirits (+4.8%), overall performance remains below expectations. Clothing sales rebounded from a negative growth in September, but the increase was attributed to heavy discounting. This led to an average basket value drop of -21%, with electricals experiencing a -21% revenue decline. The future of November’s sales is uncertain as it may suffer due to October’s volume being pulled forward.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the latest IMRG Capgemini Online Retail Index report on e-commerce sales growth in October, including specific categories and comparisons to previous averages. It also includes expert commentary from Andy Mulcahy, providing insight into potential reasons for the growth and future implications.
Noise Level: 3
Noise Justification: The article provides relevant information about the latest IMRG Capgemini Online Retail Index and specific categories’ growth rates, but it could benefit from more analysis or context on why online retail sales have slowed down and what this means for the industry in the long term.
Financial Relevance: Yes
Financial Markets Impacted: Online retailers and multichannel retailers
Financial Rating Justification: The article discusses the growth of online retail sales, which can impact the financial performance of these companies and potentially affect related stocks in the market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article
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