November 21 2006

E-retailers comment on October sales as industry hits all time high

Internet sales are growing at an ever increasing rate with October's sales reaching the all time high of an estimated £2.73 billion, according to e-retail industry body IMRG. Many retailers experienced above 50% growth over the same month in 2005 - sales at johnlewis.com were up 70%, and 109% year-on-year growth was recorded for lastminute.com's 'unusual gifts'.

The IMRG Index - which is based on hard sales data from a pool of e-retailers representing a quarter of UK online sales by value - reached 2675, eclipsing the previous high of 2602 which was recorded for December 2005. The Index is expected to rise "at least a further 30% between October and December", said the IMRG. As you would expect from the large increases in the number of people shopping online, e-retail has grown at its fastest ever rate in 2006, increasing by an average of £50 million per month. Christmas shopping online in November and December is forecast to bring sales up to a level of £7 billion.

"Laptop sales grew in excess of 100% year-on-year, closely followed by TVs and digital storage," said Jonathan Wall, marketing director at Dabs. Firebox.com also saw sales increase in October with sales breaking "all previous records, exceeding our expectations by a wide margin."

Are these figures the start of the Christmas shopping spree with consumers wanting to get the best gifts before supply runs short, or is this growth showing the start of a trend of December sales records being broken in earlier months the following year?

Press release follows:

UK internet shopping reached a new all-time high in October. The IMRG Index reached 2675, eclipsing the previous high of 2602 recorded for December 2005. Sales for October were estimated to be worth £2.73 billion.

E-retail has grown at its fastest ever rate in 2006, increasing by an average of £50 million per month during the first ten months of the year. During the same period two years ago, in 2004, the average growth rate was just £16 million per month.

The IMRG Index is expected to climb at least a further 30% between October and the peak month of December, in line with IMRG's earlier estimate of £7 billion for the 10-week run-up to Christmas, which therefore remains unchanged.

Ian Tansley, Head of Web Selling at John Lewis Direct, commented: "October has been another fantastic month for johnlewis.com with sales 70% ahead of the same period last year. There has been particularly strong growth in sales of TVs, electrical appliances (including washing machines, dryers and dishwashers) and lighting."

Kully Buhal, Head of Gifts and Experiences at lastminute.com said: "As we gear up for the festive season, there are clear signs that people have already started their Christmas shopping. Our range of unusual gifts is up 94% , month-on-month and 109% year-on-year. This growth illustrates customers' desire for exclusive gifts, which aren't available on the high street, such as Adopt a Penguin and Tea for 2 at the Ritz. Experiences & Health & Beauty gifts are also performing well; our sales figures show that this category had grown by 19% month-on-month and 26% year-on-year, suggesting once again that it is never too early to start buying those presents."

Mark Bower, Head of Theatre and Restaurants at lastminute.com said:"Theatre sales seem to be going from strength to strength. Successful shows such as Wicked, Cabaret and Spamalot have all contributed to a phenomenal growth of 76.55% year on year. The lead-time for people booking theatre tickets on lastminute.com has changed over the past few years. In 2006, 61% of people booked more than 7 days before the performance compared with 39% in 2003. This trend suggests that more and more people are using lastminute.com to manage their lifestyles as a whole and not just those last minute panics."

"Dabs had an excellent month in October with strong sales across a host of categories," advised Marketing Director, Jonathan Wall. "Laptop sales grew in excess of 100% year-on-year, closely followed by flat panel TVs and digital storage. Our festive peak seems to be starting earlier than in previous years with customers seemingly determined to get their hands on the latest products before they potentially go into short supply."

Daniel Nabarro, Chairman and CEO, Figleaves.com, said: "Figleaves.com Christmas sales of lingerie have never been so strong. Women and men love buying online. They can get advice on the Figleaves.com website. They can choose from our fantastic range, avoid the crowds and for those who are shy there is no embarrassment. Consumers can be sure that we will deliver on time and in an elegant gift box if required. Shopping online is convenient, hassle free and quick. The public love it."

Christian Robinson, Managing Director of Firebox.com, said: "October orders at Firebox.com were up 45% from 2005. Traditionally sales start to increase in October, and continue to build as we run up towards the peak Christmas Season. But this year sales have broken all previous records, exceeding our expectations by a wide margin."

Zak Edwards, founder of Prezzybox.com, advised: "Because the e-retail sector is still so young, comparatively, and is therefore in such a period of immense growth, it is always difficult to determine whether business is brisk. Based on the previous October's sales, our figures are approximately 26% up. This was a little lower than forecast, but is still pleasing in a climate where many are 'bemoaning' how quiet things are".

"In October 2006. The Natural Skincare Company Ltd. reported a staggering 67% increase in sales over the same period last year (October 2005)," said Managing Director, Amanda McGillivray. "Internet sales continue to rise substantially when compared to the same period last year."

Emma Herrod