Online retail growth slows down, but is it all bad news?

  • Online retail growth was 5% YoY in March, down from 18.9% last year
  • Online-only retailers grew by 8.9%, multichannel retailers by 5%
  • Home and garden sector saw slowest growth at +1.6% YoY
  • Clothing sector continued single digit growth (+3.7%) for five months
  • Electricals and gifts sales dropped by -26% and -22.1% respectively
  • IMRG Capgemini eRetail Sales Index report highlights the situation

Online retail recorded a growth of just 5% year-on-year (YoY) in March compared to 18.9% last year, according to the latest IMRG Capgemini eRetail Sales Index. Online-only retailers saw a marginally better result at +8.9%, while multichannel retailers grew by +5%. The home and garden sector experienced its slowest growth trajectory at +1.6% YoY, and despite strong performance in footwear (+16.7%), the clothing sector continued its five-month run of single digit growth (+3.7%). Electricals and gifts saw sales plummet by -26% and -22.1% respectively. Bhavesh Unadkat, principal consultant in retail customer engagement at Capgemini, said that while 5% growth may seem slow, it was up against a strong March 2018. Andy Mulcahy, strategy and insight director, IMRG, added that this growth is against a strong base from last year and could be seen as both positive and negative.

Factuality Level: 9
Factuality Justification: The article provides accurate information about the growth of online retail, breaking down the numbers by sector and including expert opinions to provide context and possible interpretations of the data.
Noise Level: 3
Noise Justification: The article provides relevant information about the growth of online retail and breaks down the results by sector, but it could benefit from more analysis or context to help readers understand the implications of these trends.
Financial Relevance: Yes
Financial Markets Impacted: Online retailers and specific sectors such as home and garden, clothing, footwear, and electricals
Financial Rating Justification: The article discusses the growth rates of online retail sales and their impact on various sectors, which can affect the financial performance of companies in these industries.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but the online retail growth rate has decreased significantly compared to previous years.

Reported publicly: www.retailsector.co.uk