Online shopping growth reached a record low in January. The IMRG Capgemini e-Retail Sales Index has recorded the lowest annual growth rates in its history. Like-for-like growth rose by five per cent from January 2009 to January 2010, with UK shoppers spending £4.3 billion online during the month.

Retailers enjoyed strong sales in December 2009, managing to hold off on heavy discounting, but the result was weaker annual growth for January. Monthly growth fell by 22 per cent from December 2009 to January 2010.

Tina Spooner, director of information, IMRG, comments: "The weaker yearly growth in the UK e-retail market during January follows a strong December when online retailers were clearly well prepared for the festive season. Indeed, 26 and 27 December saw the highest sales for all of 2009. Less retailer discounting due to well planned stock levels and the increase in VAT equally appear to have had an impact on the online retail sector during January."

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