Latest Index finds £5.2bn spent online during August boosting e-retail sales by 14% compared to August last year, but dropping from July
Latest Index finds £5.2bn spent online during August boosting e-retail sales by 14% compared to August last year, but dropping from July
The latest figures released by the IMRG Capgemini e-Retail Sales Index last week have revealed that British shoppers spent £5.2 billion online in August, a year-on-year growth of 14%, but a 6% fall on July.
However, the Index dismissed this decline between July and August as a seasonal trend, pointing out that the results in August 2011 were much stronger than in preceding years; during the same period in 2010 and 2009, sales fell by 8% and 10% respectively.
The last two weeks in August brought an uptick in e-retail sales, driven by the clothes footwear and accessories sector, which was attributed to back-to-school purchases. In contrast to the overall index results, the clothing sector continued to grow, seeing a 22% year-on-year rise as shoppers updated their wardrobes in preparation for autumn and to took advantage of late summer sales.
Home sector grows at travel’s expense
Other sectors that bucked the trend included home and garden, which reported a strong year-on-year growth of 40% suggesting that, rather than purchasing expensive holidays, people stayed put this summer and invested in their homes. This is supported by the figures from the travel sector, which grew just 3% year-on-year last month – a stark contrast to the 14% growth reported in August 2010.
The Index also said the riots in the second week of the month did not seem to have had a significant impact on e-retail sales, as they typically dip in mid-August.
Chris Webster, head of retail consulting and technology at Capgemini, said: “August is a tough month for e-retail. But this year saw a smaller decline thanks to the solid figures for retailers selling both online and in store. However, it’s worth noting that with such a strong performance during the first half of 2011, it’s a big ask for e-retail sales to maintain such rapid growth.”
Tina Spooner, chief information officer at IMRG, commented: “As seen in recent months, the Index continues to show that consumer spending on higher-ticket purchases is slowing. Although travel sales were up just 3% year-on-year, consumers who did purchase holidays and flights online in August spent on average 44% more than the same month last year.
Fashion retail key to online development
“Fashion-conscious consumers are one of the key growth drivers in the UK e-retail sector, with clothing sales continuing to outperform the total online retail market. Year-to-date the online clothing sector has grown 27%, with sales of accessories soaring 56% in the same period. Between January and August the total UK e-retail market grew 17%, when compared with the same period in 2010, with Britons having spent an estimated £41.9bn shopping online.”
Russ Carroll, UK managing director of Shopping.com, commented: “Drinks and DIY tools showed strong growth in August, implying Brits were making the most of the summer months to entertain and make home improvements. Clothing once more showed incredible year on year growth, a sign of the huge strides made by fashion retailers in making clothes shopping online as enjoyable as it is on the high street.”
