Continued growth in online sales for July

| Press release
The latest figures from the IMRG Capgemini e-Retail Sales Index state that the UK shoppers have spent £4.2 billion online in July 2009.
  • July online sales rise by 15.7% on June – total of £4.2 billion online sales in July
  • Year on year growth up by 16.8% as consumer confidence improves
  • Sales of alcohol online dampened by wet weather
  • Strong clothing and electrical sales online due to more sophisticated targeting techniques

New figures from the IMRG Capgemini e-Retail Sales Index reveal that UK shoppers spent £4.2 billion online in July 2009. In an encouraging sign of returning consumer confidence, sales for July were up 15.7% on June and 16.8% higher than July 2008.

Dress for Success

The Clothing, Footwear and Accessories sector has continued to see growth of 18% month on month and 17% year on year. This sector has been a driving force for the Index for the last six months and consumers still appear to be splashing the cash on new summer outfits online, perhaps due to heavy discounting and promotions.

Clothing retailers have also seen a marked success in turning more visits to their websites into final purchases. Their online conversion rates have seen an increase to one in fifteen people for July which is up from one in seventeen in June, and higher than the average across the sectors. This could be due to the more sophisticated targeting strategies that clothing e-retailers have employed to shift summer stock to make way for autumn fashion collections. Plus consumers are now more accustomed to browsing and confident when buying clothes online.

The Electricals sector has also seen continued growth in online sales throughout 2009. The maturity of this online industry means that e-retailers of electrical goods can continue to build on the customer base that they have built up.

Summer Whine

Surprisingly, online spending for Beers Wines and Spirits has seen a dramatic decline in July, which is unusual as July tends to see high sales online for alcohol. As it was the wettest July on record for England and Wales, many consumers may have been forced to cancel their summer picnics and barbeques. Online sales for the alcohol sector saw a yearly decline of 23% - the first fall in sales growth for this sector in the month of July since 2004.

Mike Petevinos, Head of Consulting for Retail for Capgemini UK, said:
“Online continues to perform strongly with year on year growth in July exceeding the last 12 months average at 16.8%. This growth continues to be driven by the apparel and electrical sectors as retailers further improve their online propositions with better product information, visual merchandising and delivery methods. The other stand-out result this month was the beers, wines and spirits sector which saw a year on year decline of 23%, no doubt due to the wettest July on record for England and Wales.”

Tina Spooner, Director of Information at IMRG comments:
“Online retail continues to outperform the high street with e-retail growth in July exceeding the yearly growth seen in July 2008. Fashion and electrical retailers reported strong growth and these remain the key drivers of the UK e-retail market.

It is evident that online merchants are becoming more sophisticated in their marketing efforts and email communications to their customers, the result of which can be seen in higher conversion rates, particularly in the clothing sector.”

Sector

% Change Month on Month

% Change Year on Year

Total Market

16%

17%

Beers, Wines and Spirits

- 15%

- 23%

Clothing, Footwear and Accessories

18%

17%

- Accessories

22%

73%

- Footwear

 

- 2%

20%

Electricals

11%

19%

Gifts

- 9%

- 2%

Health and Beauty

- 5%

21%

Lingerie

3%

14%

Notes to Editors

About IMRG
IMRG (Interactive Media In Retail Group) is the industry body for global 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
Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working, the Collaborative Business Experience. The Group relies on its global delivery model called Rightshore®, which aims to get the right balance of the best talent from multiple locations, working as one team to create and deliver the optimum solution for clients. Present in more than 30 countries, Capgemini reported 2008 global revenues of EUR 8.7 billion and employs over 92,000 people worldwide.
More information is available at www.capgemini.com.

About the ‘IMRG Capgemini e-Retail Sales Index’
The IMRG Capgemini Index 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.

Over one hundred e-retailers regularly contribute data to the IMRG Capgemini Index, including Airport Parking & Hotels Ltd, Adili.com, Arcadia Group (Burton, Top Man, Top Shop, Dorothy Perkins, Evans, Wallis, Miss Selfridge), ASOS.com, Beautique.com, BeCheeky.com, Binends.com, Black Essentials, Blacks, Boden.co.uk, Boohoo.com, Boots Direct, Brora, Buyagift.com, Carphone Warehouse, Charles Tyrwhitt, Clarks, Cloggs, Comet, Co-operative Travel, Crocus.co.uk, Dabs.com, Damart, Daxon, Debenhams, Dobbies, e-flowersUK.co.uk, Ethical Superstore, Figleaves.com, Firebox, First Choice, Freemans Grattan Holdings, Furniture123, Game, Gameplay, Gamestation, Getting Personal.co.uk, GreatValueJewellery.com, Greenfingers.com, Home & Cook, Interflora, JD Sports, J D Williams, Jack Wills, Jason Shankey, John Lewis Partnership, Ladderstore.com, La Magia, La Redoute, lastminute.com, Lighting-Direct, LK Bennett, Lookfantastic.com, M and M Direct, Made in Sheffield, Marks & Spencer, Millets, Monster Travel, Musto, Naked Wines, NaturalCollection.com, New Look, Next, Peacocks, Perfect Handbags, PetPlanet.co.uk, PIXmania, Prezzybox.com, QED-UK, QVC, R C Roland, Redcats UK, Redfoot Revolution, Retro36, Richer Sounds, Rubber Sole, Scales Express, Shoe-Shop.com, Shop Direct Home Shopping, Schuh, Serenata Flowers, Shudoo, Slurp.co.uk, SockShop, Sunshine.co.uk, Tesco.com Wine, Tesco Electrical, The Fragrance Shop, The Health Supermarket, The Natural Store, TUI UK, Turton Wines, Vertbaudet, Vie at Home, Waitrose, Wallace Sacks, Wilkinson Hardware

Quotes from retailers:

Commenting on the latest IMRG Capgemini e-Retail Sales Index, Cameron McLean, PayPal’s General Manager for UK merchant services, said:

“The rapid growth of online electrical sales may reflect the fact that almost twice as many men than women are joining the army of online shoppers each year. PayPal’s recent UK Online Retail Report showed that over 12.9 million men shop online today compared with 10.3 million women. Men love the quick and efficient nature of the internet, especially when it comes to buying technology and gadgets.

Men are also spending more online than women. The average online spend over the last six months was £2,602 for men compared to £1,930 for women. Men in fact spent more than women in every online category except groceries and clothing, suggesting that the female pound is still responsible for the growth in online sales of clothing, accessories and footwear year on year.”

Dave Thornton, Product Manager for Waitrose Wine Direct says:

“Our online service has been performing well this year and we are on track to exceed our planned growth. We achieved 4% like for like growth during July, with particularly strong categories including Rosé, up by 32%, and sparkling wines, up by 9%.”

Press Contacts:

Melissa Au
020 7025 6417
Melissa.au@redconsultancy.com

Russell Barrow
020 7025 6439
russell.barrow@redconsultancy.com