IMRG Capgemini e-Retail Breakfast Roundtable 17th January 2013

1. IMRG Capgemini
e-Retail Breakfast
Roundtable
17th January 2013

2. Agenda
8:30am: Introduction and overview
Christmas online
2012 review
Predictions for 2013
9:00am: Discussion
9:45am: Informal networking
10:30am : Close
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3. Overview Capgemini helps leading retailers
worldwide to develop and deliver their
multi-channel ambitions
IMRG is the UK’s industry association
for e-retail. It sets and maintains
pragmatic and robust e-retail standards
to enable fast-track industry growth
Over 12 years of online monitoring
• Tracking e-retail and m-retail sales
from over 100 retailers
• High street/multichannel versus
catalogue/online
• A range of KPIs, including conversion
rates and basket size and industry
sectors
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4. Christmas 2012 Online

5. December Summary
Christmas brought strong performances for
many:
• John Lewis and Debenhams both enjoyed strong
Christmas sales
17.5% • Impact of online is now really being felt on the High
YoY Street in certain categories – just ask Comet and HMV
Overall, a positive result for online retail:
£9.4 bn •
•
12% up on November
m-Retail grew by 207%
• Click and collect has continued to grow in popularity
• e-Retail conversation rate fell by 0.3% to 4.6%
demonstrating increased browsing online
• m-Retail conversion rate reached its highest ever
value of 2.3% in December
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6. Sector Splits – December 2012
Strong year-on-year growth across majority of sectors:
• Solid performance from BWS, with 19% growth
• Electricals saw a resurgence with consumers showing that they are happy
to buy electrical goods online
• Clothing showed steady growth, despite a disappointing 2012 overall
• Lingerie and Gifts had the best performance, growing 39% and 40%
respectively
% Change % Change
Nov 12 – Dec 12 Dec 11 – Dec 12
Beers, Wines and Spirits 50% 19%
Clothing, Footwear and
Accessories 9% 18%
- Accessories 28% 37%
- Footwear 11% 9%
- Lingerie 31% 39%
Electricals 18% 31%
Gifts 38% 40%
Health and Beauty 32% 13%
Travel -9% 8%
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7. 2012 Review

8. 2012 Summary
• Strong double digit annual growth of 14% - this is in-line with our forecast
• e-Retail now accounts for 15-20% of total retail market (excluding travel)
• First half of the year grew by 13%, with second half growing by 16%
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9. 2012 m-Retail
• In 2012, m-retail sales grew by an average of 304% over 2011 (270%
excluding travel)
• The average percentage of online sales via mobile devices grew from
0.4% in Q1 2010 to an average of 13.2% in Q3 2012
• The percentage of online visits via mobile devices has also risen, from
1.4% in Q1 2010 to 23.6% in Q3 2012
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10. 2012 Conversion Rates
• e-Retail conversion rate usually increases by around 1% between Nov
and Dec, but in 2012 it fell by 0.3%. However, during this period visitor
numbers increased on average by 13%
• The m-retail conversion rate hit 2.3% in Dec, the highest since we have
been tracking it
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11. 2012 Click & Collect
Click & collect has continued to grow in popularity as a delivery choice
for consumers, following a notable leap between in 2011.
Average percentage of click and collect sales (completed online)
14%
12%
10%
8%
6%
4%
2%
0%
Quarter 3
Quarter 4
Quarter 1
Quarter 2
Quarter 2
Quarter 3
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Quarter 1
2010/11
2010/11
2011/12
2011/12
2011/12
2012/13
2012/13
2010/11
2010/11
2011/12
2012/13
N.B. These figures include only those multichannel retailers with a physical
stores and, therefore is not representative of the overall online retail market.
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12. 2012 Multichannel vs Pure-play
Sales growth for pure-play retailers exceeded that of multichannel retailers:
• Pure-plays up 17% in 2012, compared to 13% for multichannel retailers
• In 2010 and much of 2011, multichannel retailers recorded stronger growth
• We usually see convergence around Christmas
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13. Discussion:
Predictions for 2013

14. Predictions for 2013
• Trends that will continue:
– Retailing to the fore; the best propositions win
– m-Retail growth will continue supported by sales of tablets
and smartphones
12%
– Digitisation of the consumer – always-on smartphones YoY
identify and connect the consumer to the online world. Is
this an opportunity or threat?
– Delivery revolution – customer choice will proliferate but £87bn
will satisfaction improve?
DISCUSSION

15. Thank you