Royal Mail strikes make £53m dent in online retail sales

by James Quilter, Brand Republic 25-Nov-09, 08:45

LONDON - Online retail sales were significantly hit by postal strikes during the middle-half of October, according to the latest research from internet industry body the IMRG.

According to the IMRG Capgemini e-Retail Sales Index, sales dropped by 2% and 5% in the third and final weeks of October respectively. The fall, which ran alongside the Royal Mail postal strikes, effectively cost online retailers £53m.

Despite the effects of the strike, October's index showed UK shoppers spent £4.2bn with online retailers during October, an increase of almost 12% compared to the same month in 2008.

The strikes appear to have had the greatest impact on clothing sales. The sector only registered a 13.2% sales increase in October, compared to 27% for the same month last year.

The rise also marks a return to double digit growth for online retail. September's index registered a 7.6% rise with £3.9bn sales, a record low for the sector.

IMRG director of information Tina Spooner said: "While the index returned the double-digit growth in October, the decline in e-retail sales values and volumes during the second half of the month shows that consumer confidence was affected by the Royal Mail strikes."