Credit crunch no match for January sales

The economic outlook may be grim but Brits haven't lost their thirst for the New Year sales.

According to the IMRG Capgemini e-Retail Sales Index for January, post-Christmas online sales lifted this year, with a rise of 19 per cent year-on-year.

Clothing, footwear and accessories was the fastest growing web retail sector year on year, notching up 32 per cent growth this January.

However, not all retail lines fared so well post-Christmas as seasonal buying habits came into play. January's online sales growth for Christmas favourites including alcohol and gifts fell by more than 60 per cent month on month.

Overall growth in web sales also tumbled for the second consecutive month.

In a statement, Capgemini head of consulting for retail Mike Petevinos said: "Our January results show that consumers are increasingly seeing online as the place to shop in the current environment.

"The strong performance of online points to a continued need for retailers to invest in the development of their e-commerce propositions. The question is whether bricks and clicks retailers [those on the high street and online] can prioritise this sufficiently above the defensive strategies needed to combat tough high street trading. If not, the risk of widening the gap versus their pure-play rivals will be inevitable."