e-Retail sees a promising H1

| Press release
Weather, football and the Olympics influence online sales
  • £34.9 billion spent online in H1 2012; £6 billion in June alone
  • Index sees year on year growth of 13%
  • Clothing sales continue to struggle due to bad weather
  • Travel and electrical soar 18% and 35% year-on-year, respectively

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, illustrating how e-retail sales are continuing to drive the retail market. British shoppers have spent £34.9 billion online so far this year compared to £31 billion spent in the first six months of 2011. In June alone shoppers spent an estimated £6 billion (an average of £117[1] per person) equating to 13% growth on June last year and a 1% drop on May.

Growth patterns in June were largely influenced by two key factors: the wettest June for over 100 years[2] and the European Football Championships. The electrical sector benefitted from both of these, reporting a year-on-year growth of 35% and 9% on May, with the football driving sales of televisions and the weather encouraging many to invest in 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.

While the disappointing summer has had a positive influence on travel and electrical goods, it did result in a disappointing month for 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 H1 2012. Sales via mobile devices, such as tablets and smartphones, continued to enjoy phenomenal growth in June, with m-commerce leaping 356% year on year[3] .

Chris Webster, head of retail consulting and technology at Capgemini says: “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 & Policy Officer at IMRG, said: “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 H1 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 H2 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.

“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.“

June 2012 IMRG Capgemini eRetail Sales Index


Notes to Editors
About IMRG
IMRG (Interactive Media In Retail Group) is the UK’s industry association for e-retail. Formed in 1990, IMRG is setting and maintaining pragmatic and robust e-Retail Standards to enable fast-track industry growth, and facilitates its community of members with practical help, information, tools, guidance and networking. Consumers can be confident when dealing with IMRG Members because all have committed to operate using methods that are Honest, Decent, Legal, Truthful and Fair, and have undertaken to not bring the industry into disrepute. The strength of IMRG is the collective and co-operative power of its members.

About Capgemini
With around 120,000 people in 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organisation, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.
Learn more about us at www.capgemini.com.
Rightshore® is a trademark belonging to Capgemini

About the ‘IMRG Capgemini e-Retail Sales Index’
The IMRG Capgemini Index, which was started in April 2000, tracks ‘online sales’, which we define as ‘transactions completed fully, including payment, via interactive channels’ from any location, including in-store.  These sales are predominantly internet-based today, but the Index remains ready to record e-retail sales conducted via whatever interactive channels the market may embrace in the future.

Index Participants
Around one hundred e-retailers now regularly contribute data to the IMRG Capgemini Index, including A. Hume Country Clothing, Airport Parking & Hotels Ltd, Amara, Arcadia Group (Burton, Top Man, Top Shop, Dorothy Perkins, Evans, Wallis, Miss Selfridge), Ask Direct, ASOS.com, Bank, Berry Bros & Rudd,  Binends.com, Blacks, Boden.co.uk, Boohoo.com, Boots Direct, Boutique to You, Brandosa.co.uk, Brora, Buyagift.com, BuyItDirect.co.uk, Carphone Warehouse, Charles Clinkard, Charles Tyrwhitt,  Clarks, Cloggs, Cocosa, Co-operative Travel, Crocus.co.uk, Dabs.com, Damart, Debenhams, Effortless Skin, Ethical Superstore, Firebox, First Choice, Freemans Grattan Holdings, Furniture123, Game, Gamestation, Getting Personal.co.uk, Greenfingers.com, Home & Cook, House of Fraser, JD Sports, J D Williams, John Lewis Partnership, Ladderstore.com, Lastminute.com, LK Bennett, Lookfantastic.com, Lyco Direct, M and M Direct, Majestic Wine, Marks & Spencer, Matalan, Millets, Naked Wines, NaturalCollection.com, New Look, Next, Perfect Handbags, PetPlanet.co.uk, Philip Kingsley, PIXmania, Prezzybox.com, Purely Gadgets, QVC, Redfoot Revolution, Richer Sounds, Sainsbury’s, Scales Express, Schuh, Scotlight Direct, Scott, Shoe-Shop.com, Shop Direct Home Shopping (Additions, Great Universal, Kays, Littlewoods, Empire, Woolworths, Very, Isme), Serenata Flowers, Size, Slurp.co.uk, Sofa and Home, Sparkling Strawberry, Sunshine.co.uk, Tesco.com, The Body Shop,  The Fragrance Shop, The Mat Factory, The Natural Skincare Co, The Natural Store, The White Company, ToxicFox, TUI UK, Turton Wines, Waitrose, Warehouse, Wilkinson Hardware & Wynsors World of Shoes.

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[1] £6 bn divided by the estimated number of UK adults 50.9m

[2] http://www.bbc.co.uk/news/uk-18678659

[3] All m-commerce data is drawn from the m-Retail Sales Index, which runs in parallel with the main Index