Online retailers face tough 2019 as discounting bites
The UK online retail space recorded its worst January sales growth (+7% YoY) in three years last month, according to the IMRG/Capgemini eRetail Sales Index. There was little relief on the back of a disappointing December, with retailers posting just over half the growth figure achieved during January last year (+13.9%).
“The discounting that has been rife since all the way back in July continued into January as expected due to post-Christmas clearance – the challenge for retailers now is how to ease off the reliance on discounting for driving sales,” says Andy Mulcahy, Strategy and Insight Director, IMRG.
“As we’ve moved into February, many sites have either switched off discounting or lessened the prominence of such offers. It’s now a matter of holding nerve, but the positive thing for clothing retailers is the weather – it has been very mild and sunny for this time of year, so that may help to stimulate activity on spring ranges that isn’t linked to discounting; you should never underestimate the potential impact of the British weather on retail.”
