UK online sales return to double-digit growth in August

Online sales in Britain recovered strongly last month from slower July sales and returned to‘normal’ double-digit growth with an 18% increase, leaving e-retail up by 15% over the first eight

The UK e-retail market grew by 18% in August, which was double the unusually low 9% growth seenin July, the survey showed. The surge was led by a return to double-digit growth for multichannelretailers (+17%) following a poor July when the heat-wave drove customers out to their physicalstores. Sales for online-only retailers grew 19%.

Moreover, British online shoppers spent slightly more on average last month. The averagee-retail basket value increased 4% month-on-month, from £72 in July to £77 in August.

There were further signs of a recovery in consumer confidence, as sectors selling high-priceproducts recorded strong growth. The Home and Garden sector led the way in August with 25%year-on-year growth, followed by Electricals at 18%. Clothing meanwhile grew 18% year-on-yearcompared to 10% in July, with the average basket value increasing by £5 year-on-year as the heavydiscounting used by retailers earlier in the year has been scaled back.

Mobile commerce (m-commerce), covering sales via smartphones and tablets, grew by 133%year-on-year, maintaining its dramatic growth rates.

Chris Webster, VP, Head of Retail Consulting and Technology at Capgemini, said: “Consumerconfidence is returning as the economy is showing signs of improvement. Increased basket values andstrong growth in apparel suggest retailers are increasing full price sales taking advantage of thisincrease in consumer confidence and seeing a healthy return. After a slow July, August has seen areturn to the levels of growth we have come to expect from online retail and has, in fact, exceededour year-on-year growth predictions by 3% points.”

Tina Spooner, Chief Information Officer at IMRG, commented: “Following a weak performance inJuly, the UK e-retail sector recovered last month with sales growth doubling to 18%. It is evidentfrom the strong performance in the electricals and home & garden sectors that consumers wereinvesting in their homes and gardens during August.

“Year-to-date the IMRG Capgemini Index has recorded 15% growth compared with the same period in2012 and, as retailers gear up for the lucrative festive trading period, we anticipate that the UKonline retail sector will maintain double-digit growth during the fourth quarter – unseasonalheat-waves permitting,” she added.

The monthly IMRG Capgemini e-Retail Sales Index covers online sales generated by more than 100e-retailers, including major brands.