The IMRG Capgemini e-Retail Sales Index have revealed a lower-than-expected performance in the online sales for November. Spending was up 11 per cent on November 2010, just below IMRG and Capgemini’s forecast of 12-14 per cent growth for quarter four.

Early snowfall in November last year most likely boosted early online sales, as people unable to access the High Street shopped online instead. Consumers this year may feel more confident in receiving their deliveries on time if they order in December.

This dip in online sales growth mirrors wider retail trends. According to the British Retail Consortium, November saw the High Street suffer its biggest annual fall in sales since May this year.

Clothing has been hit especially hard, recording just eight per cent year-on-year growth; the lowest year-on-year figures since May 2009 and in stark contrast with the 34 per cent growth reported in November 2010. The mild weather last month (compared with the deep freeze this time last year) has clearly impacted upon consumers’ desire to update their winter wardrobes unnecessarily.

However, there was more positive news in other sectors. The electrical sector, which has performed badly throughout 2011, has seen an unexpected return to form, reporting growth of 14 per cent.

Chris Webster, head of retail consulting and technology at Capgemini says: “While these lower than expected growth figures show that online is not immune to the economic slowdown, the shift from the High Street to online continues."

Tina Spooner, Chief Information Officer at IMRG said: “While the growth in e-retail sales in November is weaker than expected, this is on the back of a very strong performance in November 2010 when the Index recorded growth of 22 per cent. With consumers suffering the biggest squeeze on the cost of living and disposable incomes in over 50 years, it appears the strain on high street retailers may now also be affecting the online retail sector."

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