Figures published today from the IMRG Capgemini e-Retail Sales Index reveal abetter-than-expected performance for online sales during the first six months of 2011, with sales
from UK-based online retailers up by 19% on the same period last year. Total online sales for the100 retailers contributing to the Index reached £31.5bn for the first half of the year, 1% higherthan IMRG and Capgemini forecast back in January.The figures further underline the potential from this sector of the market for courier, expressand postal operators, which are increasingly focusing on deliveries of online purchases to providegrowth in an otherwise relatively flat domestic market.
An IMRG spokesman told CEP-Research: “Some people felt that our forecast of 18% growth forthis year was high, but we have exceeded that in the first six months, so it is a really positivestart.”
The IMRG Capgemini Index, which was started in April 2000, tracks the online sales of most ofthe UK’s largest e-retailers. Total online sales recorded last year were up 18% to £58.8 billion, afigure expected to increase to around £69 billion in 2011.
IMRG said a number of key factors had contributed to this year’s growth. “A struggling economyand high-street has driven shoppers online for better deals; a scorching April saw shoppers jumponline early to add to their summer wardrobes, while summer downpours have increased the appeal ofin-door shopping; and the Royal Wedding encouraged British people to get into the party spirit,with massive alcohol spend online,” the organisation said.
As for June itself, a total of £5.3bn was spent online, 21% more than June 2010, and equivalentto £86 per person. This growth far exceeds that witnessed on the ‘High Street’, which reported alike-for-like drop of 0.6% on the same period last year.
Clothing in particular saw strong growth in June, reporting a 31% increase in year-on-yearsales. This significant result for e-retail is in contrast to the stagnant sales of clothingwitnessed offline, IMRG said.
Alcohol was another sector that recorded a solid performance last month, with year-on-yeargrowth of 10%, as did the gift sector, which reported a 14% increase from May, driven largely byFather’s Day on the 19th June.
Chris Webster, head of retail consulting and technology at Capgemini said: “A 21% year-on-yearincrease in June is a perfect way to round off the first half of 2011, as it is consistent withwhat has been, to date, a very strong year. Bank holidays, soggy weekends and major sporting eventsencourage us to go online for our shopping – it’s quick, it’s convenient and we can do it 365days a year. It will be interesting to see whether the Index can maintain growth off the back ofstrong growth in the second half of 2010.”
David Smith, Chief Marketing & Communications Officer at IMRG, said: “Many were predicting atough year for retail in 2011, and in the high street that has proved to be the case, but theonline market has actually grown by 19% over the first half of the year. This figure is currentlyahead of our prediction for the year, so it is a really positive start overall. The rise in June of21% is actually the strongest year-on-year growth recorded in the Index since January, so online isreally booming. This growth has probably been influenced by the huge sales being put on by highstreet retailers, which would have to be mirrored across their e-commerce sites too.”
Smith said the modern retail market was dictated by what the consumer wants, and online wasbecoming ever-more central to our shopping behaviour.
“Both Sports Direct and SuperDry have released figures recently showing that their e-commercesales have doubled in the space of a year, from around 4% to 8% of total revenue. These resultsclearly demonstrate the potential for multichannel retailers to greatly increase their margins bysuccessfully integrating their available channels. ASOS reported 15% growth for Q1, lower than themarket average and suggesting maturity for them in the UK market, but, including their overseasfigures, that growth rises to 69%. ASOS are a leading light in terms of opportunities in theinternational market.”
Russ Carroll, UK Managing Director of online retailer Shopping.com, said: “Shopping behaviourclearly reflects the weather and time of year, with sports and outdoor equipment registering thelargest year on year growth on Shopping.com. Baby care, mobile phones and toys all showed stronggrowth too as people turned online to find the best deals.”
The IMRG Capgemini Index defines online sales as transactions completed fully, includingpayment, via interactive channels from any location, including in-store. These sales arepredominantly internet-based today, but IMRG said the Index remains ready to record e-retail salesconducted via whatever interactive channels the market may embrace in the future.
