The latest figures from the IMRG Capgemini e-Retail Sales Index indicate that UK online salesare back on track following a disappointing end to the first half of 2014, recording an annual
growth of 14% in July. The Index grew 3% month-on-month, which is a stark contrast to the 5%decrease experienced between May and June.An estimated £8.1billion was spent online in July in the UK, a 14% increase on the £7.1 billionspent during the same period last year. This 14% growth follows relatively weak June growth of only9% – although June’s year-on-year comparison was with a particularly strong June 2013, whichrecorded growth of 20%.
Adding to recent evidence of consumer confidence in the economy, the travel sector also stronglycontributed to the online sales in July with 13% year-on-year growth, its strongest Julyperformance since 2010. This follows four consecutive months of single-digit annual growth in thissector averaging at just 5%, the British e-commerce association IMRG further reported.
The return to growth in big-ticket items, which recorded the weakest performance in June, wasalso confirmed with the electrical sector showing a significant increase of 19% in July, shakingoff its “post-World Cup slump”, IMRG said. The Home & Garden sector also recorded impressivegrowth of 17% in July, recovering from the weak increase of 8% in June. This was, among others, dueto the warm weather, with the driest July since 2006 in the country.
Tina Spooner, Chief Information Officer at IMRG, commented: “With the July Index performanceback to solid double-digit growth, it appears the disappointing results in June were merely a blip.It is evident that consumers are now spending more money online, and the increase in high-ticketpurchases including electrical items, furniture and holidays, indicates that consumer confidence iscertainly increasing.”
She confirmed that the current growth in online sales was in line with the annual forecast. “Weare still on track to see in excess of £100 billion spent online for the first time this year.”
Adgild Hop, Head of Retail Consulting UK at Capgemini, added that the dip in online sales inJune was simply due to the fact that British shoppers were reluctant to spend excessive amount onexpensive luxuries. She expects the upward trend to continue until the end of the year and into theChristmas period.
