Online retail sales growth in the UK was up 16.4% year-on-year in August which is the highest growth so far this year with the home sector showing the strongest performance to date in 2017, according to the latest figures from the British e-commerce association IMRG.
The Home sector generated a particularly strong growth of 20.5% year-on-year last month, with an average basket value (ABV) of £130. The clothing sector also showed good growth at 17.9%, its best performance so far this year, with the ABV being up £9 on August 2016. These sectors both contributed to the highest overall ABV for the month of August in five years, despite a 2.9% inflation in August and the reported 2.4% rise in the price of clothing, which evidently didn’t keep fashion lovers from shopping yet, the IMRG Capgemini Online Retail Sales Index revealed.
On the other hand, the electricals sector suffered its fifth consecutive month of negative growth which marks the longest sustained period of negative growth for this sector since IMRG started tracking it in 2003.
Bhavesh Unadkat, principal consultant in retail customer engagement design, Capgemini, said: “With the first half of the year marred by consumer uncertainty around Brexit and the general election, retailers must be hugely encouraged by the August results. After a strong July where those in the industry were forced to up their game to compete with Amazon Prime Day, could we be seeing a continuation of their discount strategies paying off? Or is it the Brits’ reawakened love of a staycation that is the real driving factor – something that the stand-out successes of the Home and Clothing sectors would certainly indicate.
“As we move into the winter months, it is vital that retailers maintain their efforts to keep the results on an upwards trend. Despite this month’s success, and even at their 2017 peak, the figures were down by 4% on August of the previous year – there is still a way to go if retailers want to round out the year successfully.”
Outside the sector-specific growth, multichannel retailers saw 17% growth, following three months of single-digit only growth (the first time that had happened since February 2015).
Justin Opie, managing director, IMRG, commented: “Online sales growth for multichannel retailers has been on a general downward trend in recent months and, while it’s too early to say whether this spike indicates the start of a reversal to this trend, there are other data-points that may help us understand what is happening. During Q2 of this year (covering the period May-July under the index classification), click and collect penetration exceeded 30% of online orders for multichannel retailers. The IMRG Blujay Home Delivery review 2017 further indicated that the ability to combine click and collect with other shopping activity was the second most popular reason for choosing it.”
Opie speculated that this could point toward a shift in how consumers are shopping in a more focused way switching between online and offline, spending less time at high-street shops. A drop in high street footfall was reported in August, while like-for-like high street retail was up. He added that consumers are looking to take advantage of retailers’ store portfolios where it is convenient for them.
The IMRG Capgemini Index, which was started in April 2000, tracks 'online sales', that are defined as 'transactions completed fully, including payment, via interactive channels' from any location, including in-store. Over one hundred e-retailers in the UK regularly contribute data to the IMRG Capgemini Index.
