Editor's Note:  You'll notice that the title of the article below is signifcantly more negative than mine, but my thoughts were: 8% growth is still "growth," and since I'd be willing to bet that the majority (if not all) of companies,  businesses, in fact, industries as a whole, would have welcomed half of that (4%) with wide open arms, I went with "Enjoy 8% Growth" vs. "Stumble During May."  

Recession and hot weather stop (slow down) shoppers

Latest figures for online retail sales have revealed growth of just 8% for May 2009, the lowest since records began. The figures, from IMRG Capgemini e-Retail Sales Index, suggested the warmer weather during the month contributed to the slower growth.

Online sales for May 2009 totalled over £3.7bn.

Growth of 8.2% for May 2009 represented a 3.5% dip compared to April 2009 as people abandoned their computers to enjoy the Bank Holiday sunshine. This did have one positive impact - sales in the health and beauty sector shot up by 14.9% month on month as Brits stocked up on sun cream and moisturiser during the hot weather.  Online sales of beers, wines and spirits fell 17.4% during May, probably as a result of shoppers stocking up on supplies before April’s Budget. Online alcohol sales were also down 6.5% year on year. Sales of electrical goods slipped 5.7% during April but that sector seems to be holding up well during the recession as year on year sales were up 27.9%.

Mike Petevinos, head of consulting for retail for Capgemini UK, said: “Although online sales remain healthier than on the high street, UK shoppers are clearly changing their behaviour as a result of the recession – even those heading online to economise are now beginning to trim spending habits. So, whilst the underlying trend is still one of growth for online retail, the market conditions are placing all retailers under intense pressure to ensure their offerings remain competitive.”

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