UK online retail sales returned to double-digit growth in September following the weakest year-on-year growth in August in 15 years, with the clothing sector boosted by parents updating “back-to-school” wardrobes of their children, figures from the national e-commerce association IMRG have shown.
Last month, e-retail sales growth in the UK reached 12% year-on-year, according to the latest IMRG Capgemini e-Retail Sales Index. For the third quarter of 2015 overall, the Index also showed double-digit growth of 10% and the year-to-date growth also remains at 10% as the sector prepares itself for the busy Christmas period, IMRG said.
The September performance was boosted by the late Summer Bank Holiday which fell within the first week of the month, helping the Index grow 8% compared to August, although the growth was still slightly lower than might have been expected. “The Indian summer experienced in many parts of the country was likely to have been a contributing factor,” IMRG explained.
In terms of different product groups, the clothing sector returned to double-digit growth of 12% year-on-year as parents were buying clothes for their children for the new school year. However, the figure comes on top of flat September growth in 2014 when the warm weather probably held back shoppers from buying autumn-wear. In any case, the 12% September growth compares to just 5% growth in August, the sector’s lowest-ever performance in August, following double-digit growth in June (18%) and July (14%).
The home sector reported a particularly strong month, with an increase of 47% year-on-year, surpassing the 31% growth in August.
The electrical sector which has delivered a disappointing performance in 2015 and a 1% drop in August year-on-year in particular, saw a spike in September growing by 6.4% on the same period last year, its second highest year-on-year growth this year. The launch of the new iPhone 6S has probably contributed to the positive result.
The m-commerce sector, which comprises sales via smartphones or tablet devices, continued to grow strongly with an annual increase of 41% in September, almost reaching the 42% growth seen in July after a slightly lower 33% growth in August. Year-to-date, the sector has grown by 43% in 2015, compared to 46% at the same point in 2014.
Alex Smith-Bingham, Head of Digital, Consumer Products and Retail, Capgemini, commented: “Whilst it’s reassuring to see the Index return to double digit growth, it’s not as strong as the sector would have liked. With the Rugby World Cup, the warm weather and the late Bank Holiday, retailers could be forgiven for expecting a better performance in September. As we approach the busy Christmas period, and with Black Friday just a few weeks away, it will be interesting to see whether British shoppers have intentionally held back for the heavy discounting the festive season brings.”
Andy Mulcahy, editor at IMRG, said: “It’s been a very topsy-turvy year so far in 2015 for online retail growth – we had a slow Q1, a strong Q2 and now an average Q3. While we might have expected growth to be higher in September – it was building on flat growth in September 2014 – the prolonged period of very warm weather will have impacted upon shopper behaviour so it’s going to be interesting to see what kind of Q4 we get.”
He added that all the indicators are hinting towards the Black Friday peak becoming “an even bigger shopping event than it was last year.”
