IMRG Capgemini e-Retail Sales Index: Steepest May-June decline since 2008

| Press release
Dip in consumer confidence and World Cup woes impact online shopping in June
  • 9% YoY growth in June; lowest annual growth since July 2013
  • 5% MoM decline in June; steepest May-June drop since 2008
  • Big ticket items record poor YoY performance; Electrical 7% and Travel 3%
  • 14% growth in Q2; the lowest quarterly increase in two years
  • H1 remains positive; 16% annual growth

London - The latest figures from the IMRG Capgemini e-Retail Sales Index have revealed online sales experienced a disappointing end to H1, recording the lowest annual growth since July 2013 (9%), and the steepest drop between May and June (5%) since 2008. 
While the annual growth does come off the back of a particularly strong June 2013 (20%), and the overall performance in H1 has been positive (16%), the results reveal the impact the current dip in consumer confidence has had on e-retail sales.
In terms of specific sectors, it was the big ticket items that recorded the weakest performance in June, as British shoppers avoided splashing out on expensive luxuries. The Travel sector saw a YoY increase of just 3%, its lowest annual growth since July 2013, and Electricals just 7%; no doubt further hampered by England’s early departure from the World Cup. 
Tina Spooner, Chief Information Officer at IMRG, commented: “Football fans clearly stocked up their fridges in anticipation for the World Cup, as the Beers, Wines and Spirits sector surged 20% year-on-year last month, and the 17% growth we saw from May to June was the steepest jump between those months we have ever seen in this sector. But during the week England were knocked out we saw a distinct 15% drop in alcohol sales as fans were denied the chance to raise a glass to a repeat of 1966.”
“It’s fair to say June was not a good month for British sport and the poor performance in the Electricals sector – with growth of just 7% year-on-year – suggests Britons were not too interested in buying new technology to watch the action, whilst higher than average temperatures and lots of sunshine kept customers outdoors.”
Significantly, the conversion rates rose to 4.8% last month, the highest rate for June since 2008, while the average basket value recorded £83 (excluding travel), up 5% from June last year.
Chris Webster, VP, Head of Retail Consulting and Technology at Capgemini, said: “Online sales during H1 have been generally consistent with our earlier growth forecast of 17%, but at 14%, the lowest quarterly growth in two years, Q2 has been heavily skewed by June’s poor performance.
“The figures reveal just how influential a turbulent economy can have on our shopping behaviour. The current uncertainty around interest rates has resulted in a dip in consumer confidence, and as a result, we’re still happy to buy the everyday items, but we’d prefer to hold off on those expensive treats.”

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