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Tuesday August 26th 2008

Online retail reaches £4.8 billion in July boosted by wet weather

Archived article dated Tuesday August 26th 2008

Figures released from the IMRG Capgemini e-Retail Sales Index today show that online spending rose in July to reach a total market value of over £4.8 billion - the equivalent of £79 for every person in the UK.

The Index shows that shoppers continued to spend online despite pressures on disposable income with sales rising 11.3% on June. Online retail growth draws a sharp comparison to BRC figures which showed that high street sales for July were 0.9% down on June. A wet July did not appear to curb UK shoppers as they turned to the internet to continue their spending. The rain however did appear to dampen barbeque related alcohol sales, typically high for July, which saw slower year on year growth. Instead, shoppers turned their thoughts to holiday plans and summer wardrobes which saw online sales in the clothing, footwear and accessories sector grow by 22.8% for July. July saw growth across all sectors apart from the volatile and highly seasonal gifts sector which experienced a decline in sales. The electrical sector, which has seen a tough trading year so far, experienced its highest growth in 2008 - likely boosted by demand for the new Apple iPhone 3G and flat screen televisions ahead of the Olympics.

Mike Petevinos, Head of Consulting for Retail at Capgemini UK, said:

“Gloomy market conditions have not dampened consumers' appetite for shopping online. Online sales continue to show strong growth, particularly when compared to the tough trading conditions on the high street. The increase in clothing/footwear sales demonstrates consumers' ever increasing familiarity with e-retailing, extending their shopping behaviour into more and more categories. Even the electrical sector, which is highly susceptible to falling consumer confidence, is seeing good growth driven by the increased choice, price transparency and convenience that online has to offer.”

Jo Evans, MD of IMRG added: "This month's Index results show that there is still confidence in purchasing products and services online despite the current economic conditions. Online retailers are taking full advantage of the present situation by making exceptional offers on their websites, with online sales now in full swing and UK shoppers using the web to search out those bargains, compare prices and ensure they get the best deals."

Tagged as: imrg | online shopping | internet | cap gemini

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