Weather and sporting events push June online sales up 13% on 2011, but down on last month
Weather and sporting events push June online sales up 13% on 2011, but down on last month
The latest figures from the IMRG Capgemini e-Retail Sales Index have confirmed a solid performance for online sales during the first six months of 2012.
The Index said today that British shoppers spent £34.9 billion online so far this year compared to £31 billion spent in the first six months of 2011. And in June shoppers spent an estimated £6 billion, which equates to 13% year-on-year growth, but marks a 1% drop on May.
Summer’s winners and losers
The electrical sector benefitted, reporting a year-on-year growth of 35% and 9% on May, with Euro 2012 football tournament and the impending Olympics driving sales of televisions and home entertainment products.
The travel sector also benefitted from the wet weather, registering a 17% year-on-year growth as rain soaked Brits flocked to sunnier climes.
The disappointing summer had a less positive influence on the clothing sector, particularly after a warm May helped the sector return to a more positive year-on-year growth of 11%. Clothing reported a relatively weak 4% increase on June 2011 and a drop of 9% on May, as the weather discouraged shoppers from splurging out on summer clothing. However accessories, which typically have a better shelf life and lower ticket value than clothing, were up 47% year-on-year.
The gift sector reported a 43% increase from June last year, and a month-on-month growth of 18%, driven largely by Father’s Day purchases.
In June, year on year growth of 17% for online-only retailers exceeded that of multichannel retailers at 11% – in line with the rest of the first half of 2012. Sales via mobile devices, such as tablets and smartphones, continued to enjoy strong growth in June, with m-commerce leaping 356% year-on-year.
Taking stock of performance
Chris Webster, head of retail consulting and technology at Capgemini, said: “The retail sector has experienced a very turbulent few months, with the Queen’s Jubilee, the football and the weather all playing their part. With the Olympics just around the corner we are likely to see further disruption to the Index; next month and for the rest of the year.
“Retailers are being presented with a unique opportunity to gain legions of international customers during the Olympics, as millions of tourists sample the best of the British High Street. Instead of just a souvenir, international visitors could be returning home with a lifelong relationship with British brands and so it is essential that retailers have an international online strategy in place to take full advantage of the opportunity.”
Andrew McClelland, chief operations and policy officer at IMRG, added: “In challenging trading conditions caused by the weather, continued negative economic news and consumers paying down credit, the Index has still managed to record double-digit growth for the first half of 2012, highlighting the value that consumers place in the strong retail proposition that online is able to provide. The market is on a strong footing to push ahead in the second half of 2012 now, as we anticipate a boom in online shopping as many people will have the option of working from home during the Olympics and will therefore be in to receive deliveries.”
McClelland also highlighted the continued growth of m-commerce. “Of the sectors measured, accessories is showing the strongest growth at 47% year-on-year, but mobile commerce is still the big story here, with average order values comparable to the full website, 356% year-on-year growth and retailers seeing mobile sales at circa 8% of their total digital income.”
