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, equivalent to £72(1) for every person in the UK. This is the second consecutive month, that year on year growth has been above 20%, the highest rate since June 2008.
Whilst British sporting performances may have underperformed, supermarkets, stores and off-licences emerged as clear winners, as sales saw an impressive 20 % year on year growth. As the World Cup and Murray fever gripped the country, mixed with the third hottest June since 1929(2), 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.
It was perhaps a result of the nation’s hopes to see England conquer, or Murray lift the men’s title, that boosted online sales of electrical goods rise to 26%, compared to June of the following year and a 3% increase from May 2010.
Sales of clothes also saw a considerable year-on-year increase of 22% as the summer set in. Within this category, it was the level of accessories bought online that saw the most significant jump, with an increase of 73% from the same month last year.
The report also highlighted that June 2010 was a particularly strong month for multi-channel 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, Head of Retail Consulting and Technology, 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.”
Tina Spooner, Director of Information at IMRG said: “With almost all sectors showing double-digit growth last month, it is apparent the boost from World Cup fever continued into June. As a result, the growth in e-retail sales rose to 18% in the second quarter and year to date the online retail sector is up 15% compared to the first half of 2009.”
Bruce Fair, Managing Director of Kelkoo UK, said:
“The outlook for retailers historically becomes brighter when the sun starts to shine and this summer looks to be no different. As well as the heat, sports events like the World Cup appear to have had natural implications for consumer spending and retailers, prompted by the rapid rise in spectator and sports-related purchases. Among the current economic uncertainty, the good news is that retail spending over the summer as a whole is forecast to see a £1.4 billion uplift on last year, the highest year-on-year increase over the past three years.”
Jonathon Brown, Head of Online Selling at John Lewis, said:
“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. 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.”
Ian Wilson, UK Managing Director of Shopping.com, said:
“The continuing good weather has lifted the mood of the nation which has been reflected in the ongoing success of the retail market. The many major sporting events, including the World Cup and Wimbledon, inevitably led to increased purchases, from garden furniture to electrical goods, with many hosting BBQs and parties at home to make the most of the sunshine, so it’s not a surprise that the IMRG Capgemini report highlights the second consecutive month of yearly growth above 20%. Providing ease of use and a vast array of product, it’s clear that online shopping is booming as more and more consumers become addicted to its lure.”
Michael Norton, Managing Director of PayPoint.net, said:
“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 per cent year-on-year in the quarter ending in June, and we have also seen strong growth in transaction volumes. Such a spirit of entrepreneurship is good news not just for our sector, but for the economy as a whole.”
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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.
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 ExperienceTM. 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 2009 global revenues of EUR 8.4 billion and employs 95,000 people worldwide.
More information is available at www.uk.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.
Over one hundred e-retailers now regularly contribute data to the IMRG Capgemini Index, including Airport Parking & Hotels Ltd, Amara, Arcadia Group (Burton, Top Man, Top Shop, Dorothy Perkins, Evans, Wallis, Miss Selfridge), Ascension (formerly Adili.com), ASOS.com, Beautique.com, BeCheeky.com, Binends.com, Black Essentials, Blacks, Boden.co.uk, Boohoo.com, Boots Direct, Brora, Buyagift.com, BuyItDirect.co.uk, 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, Faith Shoes, Figleaves.com, Firebox, First Choice, Freemans Grattan Holdings, Furniture123, Game, Gameplay, Gamestation, Getting Personal.co.uk, GreatValueJewellery.com, Greenfingers.com, Holiday Extras, Home & Cook, House of Fraser, Interflora, JD Sports, J D Williams, Jack Wills, Jason Shankey, John Lewis Partnership, Ladderstore.com, 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, Richer Sounds, Rubber Sole, Sainsbury’s, Scales Express, Shoe-Shop.com, Shop Direct Home Shopping, Schuh, Serenata Flowers, Shedstore, Shudoo, Slurp.co.uk, SockShop, Sofa and Home, Sunshine.co.uk, Tesco.com, Tesco Electrical, The Fragrance Shop, The Health Supermarket, The Natural Store, The Present Room, The White Company, TUI UK, Turton Wines, Vertbaudet, Vie at Home, Waitrose, Wallace Sacks, Wilkinson Hardware and Winedirect.co.uk.
(1) Calculation by 4.4 billion, divided by 61,414,062(www.google.com/publicdata)&am p;nb sp;
(2) http://news.bbc.co.uk/weather/hi/uk_revi ews/newsid_8784000/8784392.stm