UK e-retail sales recovered in May from relatively low growth in April thanks to warmer weather,the Queen’s Diamond Jubilee and mobile commerce, according to figures from the British online
retail association IMRG and consultants Capgemini.The Capgemini e-Retail Sales Index revealed that shoppers in the UK spent a total of £6 billiononline during May 2012 with an average amount of £117 per person, equivalent to 13% growthyear-on-year, up from only 5% growth in April when wet weather negatively impacted the online salesof clothing.
IMRG said this solid performance marks a return to growth in line with the last 12 months andgrowth expectations of 13% for the full year.
Mobile commerce recorded the most remarkable year-on-year growth with 359% as mobile-basedwebsites are increasingly favoured by British shoppers on the go. Tina Spooner, Chief InformationOfficer at IMRG, commented: “The explosive growth in mobile sales continued in May, with them-Retail Index recording its strongest performance this year. While this growth is predominantlydriven by sales via tablet devices, it is evident that consumers’ use of smartphones as a researchtool in-store is also increasing.”
The clothing sector was boosted by the warm weather in May returning to 11% growth, up from itslowest ever level in April. “Clearly people were waiting for the sun to return after a wet April,before replenishing their summer wardrobes with the best online deals,” IMRG said.
The Queen’s Diamond Jubilee weekend taking place from 2-5 June gave an additional boost to thealcohol sector generating a solid 12% month-on-month, as people rushed online to stock up onalcohol to celebrate the event.
The electrical sector continues to perform well, with demand for the latest gadgets, such as thenew iPad, helping to maintain a 22% year-on-year growth. This is quite an improvement compared toMay last year when the sector recorded growth of only 6%.
Gifts as well as health and beauty products experienced tremendous year-on-year growth in Maywith 39% and 33% respectively.
Year-on-year growth for pure play/catalogue retailers outperformed their multi-channelcounterparts for the fifth consecutive month. While those retailers with an online only presencesaw a growth of 19%, those with both an online and a high-street presence recorded just 10%. Thisemerging trend is in contrast to the last two years, where multi-channel retailers benefitted fromcustomer loyalty and trust, IMRG explained.
Chris Webster, Head of Retail and Technology at Capgemini, said: “It is encouraging to seeoverall growth returning to all sectors of e-retail. The battle between online-only retailers andtheir multi-channel counterparts continues apace with online only leading the charge in 2012 aftertwo years where multi-channel retailers have led the way.
“Rising mobile conversion rates also demonstrate that shoppers’ willingness to browse on amobile device is converting into transactions and purchases. This means retailers are refreshingtheir mobile-enabled websites to catch shoppers on the go and in a way that builds consumer trust,”he added.
The IMRG Capgemini Index, which was started in April 2000, tracks ‘online sales’, defined as‘transactions completed fully, including payment, via interactive channels’ from any location,including in-store.
