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August online sales growth doubles that of July

16 Sep 2013

Figures from the IMRG Capgemini e-Retail Sales Index reveal the e-retail market returned to double digit growth in August, with online sales up 18% year-on-year; double that of the growth rate in July (9% year-on-year). This was led by a return to double-digit growth for multichannel retailers (+17%) following a poor July when the heat-wave drove customers out to their physical stores. Sales for online-only retailers grew 19%.

Chris Webster, VP, Head of Retail Consulting and Technology at Capgemini said: “Consumer confidence is returning as the economy is showing signs of improvement. Increased basket values and strong growth in apparel suggest retailers are increasing full price sales taking advantage of this increase in consumer confidence and seeing a healthy return. After a slow July, August has seen a return to the levels of growth we have come to expect from online retail and has, in fact, exceeded our year-on-year growth predictions by 3% points.

There were further signs of a recovery in consumer confidence, as sectors selling high-price products recorded strong growth. The Home and Garden sector led the way in August with 25% year-on-year growth, followed by Electricals at 18%. Clothing meanwhile grew 18% year-on-year compared to 10% in July, with the average basket value increasing by £5 year-on-year as the heavy discounting used by retailers earlier in the year has been scaled back.

Tina Spooner, Chief Information Officer at IMRG comments: “Following a weak performance in July, the UK e-retail sector recovered last month with sales growth doubling to 18%. It is evident from the strong performance in the electricals and home & garden sectors that consumers were investing in their homes and gardens during August.

Year-to-date the IMRG Capgemini Index has recorded 15% growth compared with the same period in 2012 and, as retailers gear up for the lucrative festive trading period, we anticipate that the UK online retail sector will maintain double-digit growth during the fourth quarter – unseasonal heat-waves permitting.

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.  
Over one hundred e-retailers now regularly contribute data to the IMRG Capgemini Index, including A. Hume Country Clothing, Addict, Airport Parking & Hotels Ltd, Amara, Arcadia Group (Burton, Top Man, Top Shop, Dorothy Perkins, Evans, Wallis, Miss Selfridge), Ask Direct, ASOS.com, B&Q, Bank, Berry Bros & Rudd,  Binends.com, Blacks, Boden.co.uk, Boohoo.com, Boots Direct, Boutique to You, Brora, Buyagift.com, Carphone Warehouse, Charles Tyrwhitt,  Clarks, Cocosa, Crocus.co.uk, Dabs.com, Damart, Debenhams, Dune, Dunelm Mill, Effortless Skin, Ethical Superstore, Firebox, First Choice, Freemans Grattan Holdings (Freemans, Grattan, Look Again, Kaleidoscope, Curvissa, Swimear365, Witt International UK), Game, Gamestation, Get The Label, Getting Personal.co.uk, Greenfingers.com, Home & Cook, House of Fraser, JD Sports, J D Williams, John Lewis Partnership, Ladderstore.com, Lastminute.com, LK Bennett, Lookfantastic.com, M and M Direct, Majestic Wine, Marks & Spencer, Matalan, Millets, Moss Bros, Naked Wines, NaturalCollection.com, New Look, Next, Perfect Handbags Perricone MD, PetPlanet.co.uk, Philip Kingsley, PIXmania, Prezzybox.com, Purely Gadgets, QVC, Redfoot Revolution, Richer Sounds, Sainsbury’s, Scales Express, Schuh, Scotlight Direct, Scott, Shoe-Shop.com, Shop Direct Home Shopping (Brand Quarter, Kays, Littlewoods, Very, Isme, Woolworths), Serenata Flowers, Size, Sofa and Home, Sparkling Strawberry, Sunshine.co.uk, SuperGA, Tesco.com, The Body Shop,  The Mat Factory, The Natural Skincare Co, The Natural Store, The White Company, This is Pulp, ToxicFox, TUI UK, Turton Wines, Waitrose, Wilkinson Hardware & Wynsors World of Shoes.
About IMRG
IMRG (Interactive Media in Retail Group) is the UK’s industry association for 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. The strength of IMRG is the collective and cooperative power of its members. For more information please visit http://www.imrg.org/ or email membership@imrg.org  
About Capgemini
With more than 125,000 people in 44 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2012 global revenues of EUR 10.3 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organisation, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.
Learn more about us at www.uk.capgemini.com.
Rightshore® is a trademark belonging to Capgemini