Online sales in July see weakest growth since January 2010
Online sales rose by just 9% in July to record the weakest annual growth since January 2010, according to figures released by IMRG and Capgemini in their e-Retail Sales Index.
The Index also shows the first ever negative growth between June and July (-2%), following strong 20% year-on-year growth in June, as the July heatwave drove shoppers outside to the high streets.
The figures reflect a recent poll by IMRG which found that two-thirds of the retailers surveyed found the prolonged hot weather in July had a negative impact on their online sales. The research also revealed that a number of merchants saw sales drop as the heat-wave set in, although some suggested that online promotions were not strong enough to lure shoppers away from the high street.
Despite a fall in sales, online-only retailers outperformed their multi-channel counterparts in July. Online-only saw an increase of 13% year-on-year, while retailers which have both a physical and online presence recorded just 6% growth, the lowest reported by the Index for this group since IMRG and Capgemini started tracking it in 2010.
Weak year-on-year rises were recorded across most categories, including electricals (+2%), health and beauty (+3%) and travel (+3%). UK shoppers also spent less online in July, with the average online basket value at £72, which was 15% down on July 2012.
Categories which performed well in July include home and garden products with a 37% year-on-year rise, while sales of beers, wines and spirits rose by 23%.
On a week-by-week basis, the week commencing 15 July saw total e-retail sales grow 25% on the previous week (8 July). This was boosted by the clothing sector, which grew by 56% on the first week of the month as retailers launched their seasonal promotions.
The M-Commerce Index continued to grow with sales up 129% year-on-year in July, although the rate was significantly down on the levels seen in 2012. However, the conversion rate via mobile devices has improved over the past year and was 2.5% in July.
Tina Spooner, chief information officer at IMRG, explained: “There is no doubt that the prolonged heat-wave had a detrimental effect for online retailers. Following the coldest spring in over 50 years, it is hardly surprising that Britons headed outside when the much-needed sunshine appeared. It is interesting to note however that it is only desktop sales that appear to have been impacted; the mobile sales growth of 129% is lower than in recent months but not significantly so, suggesting that consumers still shopped via their devices while bathing in the sun.”
