Online spending increased by 18% during Q1 2011 compared with the same period last year, the strongest first quarter growth since 2008, according to the latest IMRG Capgemini e-Retail Sales Index report.


As the high street reports the worst drop in sales in 15 years, the index has revealed that online sales are continuing to grow, with March seeing a year-on year increase of 14%.

During the month, UK shoppers spent, on average, £82 each online, totalling £5.1bn.

An 8% drop in the sales of electrical goods from February was also recorded as consumers tightened their belts after the budget announcement on March 23.

The gap between multi-channel and online-only retailers continues to increase, said the report. Those with both a high street and online presence saw a 19% growth on average compared with March last year, while online-only retailers experienced just 6%.

Capgemini's head of retail consulting and technology Chris Webster said: "March was a solid month for online retail; 14% annual growth is a healthy result and quite a contrast with the reports from the high street. The 18% growth in the Index during Q1 is indicative of a new trend. Consumers are indeed tightening belts, but they are still shopping, and have simply become more strategic in their buying habits."

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