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BizReport : Ecommerce archives : August 20, 2016

UK online sales reaches 20-month high in July

Online fashion sales for the month of July jumped 22% year on year, as deep discounting motivated shoppers in the UK to spend, according to the IMRG Capgemini eRetail Sales Index.

by Helen Leggatt

The latest Index reveals a 20-month high, the highest YoY growth since November 2014,
with total online sales up 19% for the month compared with 2015. However, the average value of a cart at checkout fell from £80.52 in June 2016 to £78.39 the following month.
According to IMRG, this is the result of heavy discounting motivated, in part, by retailers competing with Amazon's Prime Day (12 July).

"These low prices spurred high volume sales which ensured double digit growth," commented Bhavesh Unadkat, Management Consultant in Retail Customer Engagement Design, Capgemini.

The warmer weather in July also prompted consumers to head online to purchase seasonal clothing. The overall The overall clothing sector grew 22%, while the category's sub-sectors also recorded above-average year growth including accessories (33%), footwear (24%), lingerie (31%) and womenswear (21%).

The home sector was up 50% year on year, while garden-related sales were up 39%. In fact, the only sector to record a drop was beers, wines and spirits, which fell only slightly by 1%.

"Year-to-date, UK online sales growth is ahead of forecast at +15% year-on-year (forecast was for +11%) but, while we anticipate seeing double-digit growth continue during August due to a weak performance for the same month last year, 2016 is proving to be a tough one to predict - particularly given the referendum result and the fact we have yet to record any significant impact from it in the Index so far, while some other economic indicators have already revealed some degree of impact," said Tina Spooner, Chief Information Officer, at IMRG.

Tags: ecommerce, online shopping, research, UK

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