BRITISH shoppers spent more than £4.4bn over the internet in August but the combined effect of the wet summer and the credit crunch helped to fuel a downturn in online sales, market analysts reported yesterday.
BRITISH shoppers spent more than £4.4bn over the internet in August but the combined effect of the wet summer and the credit crunch helped to fuel a downturn in online sales, market analysts reported yesterday.
The statistics, published by analysts IMRG, showed internet shopping transactions up 15.6% compared to last year but that August saw a 10% drop in sales over the month before.
Poor economic conditions, twinned with bad weather, led to the dip in internet shopping, with dramatic drops recorded in clothing sales (19%) and beers and wine (10%) in August.
Accessories proved to be the strongest area of growth with an 18% increase in sales in August compared to the month before, with analysts concluding that shoppers are happier to refresh existing outfits rather than splurge on key new pieces during the economic downturn.
"It is important to acknowledge the inevitable impact of faltering consumer confidence, with shoppers opting for lower cost accessories in preference to big ticket items," said Mike Petevinos, head of consulting for retail analysts Capgemini UK, yesterday.
He added that the online shopping data stressed how the internet was now mirroring high street retail trends.
Mr Petevinos said: "The results for August demonstrate the maturing of e-retail. Online sales are starting to mirror more closely seasonal retail patterns, experiencing a dip in August for the second year running."
Internet entrepreneur Roz Colthart, of Edinburgh, founder of www.black-essentials.com, a website dedicated to black-only fashion items, said her company's sales had grown month on month since last August and agreed that accessories were proving more popular for shoppers.
Ms Colthart said: "Our sales have more than doubled since last August and our average spend has gone up too. We sell only black items and black is seasonless so it may be that people are investing in something they know won't go out of fashion. With accessories, women still want to treat themselves."
Internet retailers who took part in the IMRG found that while people were still spending amid the economic downturn, the type of items bought had altered. There was no change in the number of internet transactions made for electrical goods and a 4% drop in gifts bought online.
The e-retail sales index tracks online transactions based on data from around 60 retailers who sell online.
Jo Evans, managing director of IMRG, said: "Despite the continuing problems in the UK economy, it is heartening to see online shopping's continuing double digit annual growth. This reveals the continuing maturity of the online marketplace."
