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June online sales achieve highest growth in two years

Online retail sales increased by 20% year-on-year in June to mark the highest recorded growth in two years, figures released by IMRG Capgemini have shown.


June online sales achieve highest growth in two years

Online retail sales increased by 20% year-on-year in June to mark the highest recorded growth in two years, figures released by IMRG Capgemini have shown.

The latest IMRG Capgemini e-Retail Sales Index also found monthly growth of 2.4% on May 2013, the first time the index has recorded a rise between May and June in five years.

Results from the index reveal that in the second quarter of the year online sales grew by an average of 17% on the same period in 2012, exceeding earlier predictions of 12%. However, the average basket value (excluding travel) in June stood at £79, down 9% compared to £87 in June 2012, as shoppers took advantage of seasonal promotions online.

Clothing was one of the best performing sectors with 29% year-on-year growth in June, as the warm weather encouraged shoppers to update their summer wardrobes. Sales of home and garden products also increased, up 35% on a like-for-like basis, as consumers made improvements to their homes. In addition, the good weather benefited the travel sector with sales up 15% year-on-year and 4% on May 2013.

The M-Commerce Index continued to grow, up 136% year-on-year in June and 8% on May 2013. Conversion rates via mobile devices increased from 1.27% in June 2012 to 2.03% in June 2013, as spending via tablets increases driving conversation rates closer to that of desktops.

Tina Spooner, chief information officer at IMRG said: “The online retail market has performed above expectation so far this year, with H1 coming in at 16% average growth against our earlier forecast of 12%. We haven’t seen the rate of year-on-year growth recorded in June for two years, which is around the time confidence in an economic recovery seemed to be heading toward its lowest ebb. The solid growth last month was driven by a strong performance in clothing, perhaps as a result of heavy discounting, however the UK online retail market has performed remarkably consistently throughout 2013 so far, which may signify an overall improvement in consumer confidence that will be welcome news for many.”

Chris Webster, VP, head of retail consulting and technology at Capgemini: “The uplift experienced this month will provide retailers with a note of cheer, with the Index recording its biggest year-on-year growth since June 2011 and Q2 being 17% up on Q2 2012. 

“The m-commerce Index remains strong as consumer confidence in purchasing goods and services via smartphones and tablets continue to grow. The findings provide further evidence of the value mobile technologies have brought to the retail sector as consumers continue to shop via this channel.”

Andrew McElland, chief operations & policy officer, IMRG will be chairing the Retail Bulletin's 3rd Mobile Retailing Summit, 24 September 2013 in London. Click here for further details and registration.

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