Online retail market up 20% on June 2009, according to latest quarterly UK e-commerce sales index
Online retail market up 20% on June 2009, according to latest quarterly UK e-commerce sales index
The latest results from the IMRG Capgemini e-Retail Sales Index reveal that total online sales in June rose a fifth year on year, boosted by a combination of warm weather and a busy sporting calendar. Shoppers spent a total of £4.4 billion online during June. This is the second consecutive month, that year-on-year growth has been above 20%, the highest rate since June 2008.
While British sporting performances may have underperformed, supermarkets, stores and off-licences emerged as clear winners, as sales saw impressive 20% year-on-year growth. As the World Cup and Murray fever gripped the country, mixed with the third hottest June since 1929, consumers stocked up on alcohol supplies to celebrate and commiserate, helping to boost sales by 23% on June last year – a 12% increase from May.
Online sales of electrical goods rose to 26%, compared to June of the previous year and a 3% increase from May 2010, while sales of clothes also saw a considerable year-on-year increase of 22% as the summer set in. Within this category, the proportion of accessories bought online that saw the most significant jump, with an increase of 73% from the same month last year.
High Street extends brands online
The report also highlighted that June 2010 was a particularly strong month for multichannel retailers, enjoying a year-on-year growth of 27%, which suggests High Street retailers are recognising the overwhelming benefits of a strong online offering.
Chris Webster, vice president of retail consulting and technology for Capgemini, said: “The combination of the World Cup, Wimbledon and the high temperatures resulted in a record June for online shopping.
“Despite turbulent times, June has seen the second consecutive month of year-on-year growth above the 20% mark. Consumers are more savvy than ever and continue to look towards online shopping to find the best deals that the high street and the Internet can offer.”
Jonathon Brown, head of online selling at John Lewis and IMRG member, commented: “June saw a continued run of excellent performance for Johnlewis.com as overall sales increased 43% on last year. As World Cup fever peaked we saw sales in vision and across the electrical and home technology directorate perform very strongly, with sales of digital recorders up three-fold as customers planned to watch the matches again and again. Fashion was again outstanding in its performance with womenswear up over 400% on last year, which continues to highlight the return we are seeing from the efforts over the past 12 months to be a destination fashion retailer.
Retailers meet high demand
“In addition we were very pleased with our performance in women's accessories and beauty following our launch of premium beauty brands online. Finally, home also delivered strong sales with all buying offices seeing significant increases on 2009 figures. Textiles and carpets led the way with sales increasing over 50% on last year. We are working hard to ensure we are not only delivering great numbers but also helping to satisfy and delight our customers as we do it.”
Michael Norton, managing director of PayPoint.net, added: “We're seeing evidence that the e-commerce sector is returning to health – both in terms of business confidence and online sales. We are particularly encouraged by the growing interest from would-be entrepreneurs in setting up their own online businesses. According to our data, the number of new businesses going live with our online payment services increased by 150% year-on-year in the quarter ending in June, and we have also seen strong growth in transaction volumes.”
