Industrial action causes market decline for the online retail segment

Postal strike costs e-tailers ?53 million

Research for the IMRG Capgemini e-Retail Sales Index has found that the Royal Mail postal strike caused the e-tail market to shrink by seven per cent in the space of two weeks.

According to Retail Week, despite seeing monthly growth of 8.4 per cent over September, the market fell by 2 per cent and then a further five per cent in the two weeks that the strike took place.

The cost to the e-tail industry is an estimated £53 million in lost sales.

“Whilst the overall Index returned to 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,” commented IMRG’s director of information, Tina Spooner.

“However, with the threat of further strike action now averted in the run up to Christmas, shoppers’ concerns around delivery will no doubt be dissipated.”

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