IMRG Capgemini e-Retail Sales Index: Weakest August in 15 years for online retail sales

15 Sep 2015

London – The latest figures from the IMRG Capgemini e-Retail Sales Index have revealed that UK online retail sales were up just 5% year-on-year (YoY) last month and down 6% on July. Whilst it follows a particularly strong August 2014 (18%), it does mark the weakest performing August since the launch of the Index in 2000; potentially the result of a later Bank Holiday (which will be included in the September Index results this year) and a delay in back-to-school shopping. Despite this dip however, the Index has seen a solid year-to-date increase of 10%.

Low growth was recorded across a number of sectors in August, including clothing. Despite a slightly turbulent start to the year, clothing experienced a return to double digit growth in June (18%) and July (14%). However, online sales of clothing recorded an annual growth of just 5% last month; its lowest ever performance for the month of August.

Accessories, which is traditionally one of the more robust and stable sectors, saw an increase of just 14%; its lowest increase since August 2009. Sales of electrical items continued its run of limited growth – whilst August saw an increase of 6% on July, it recorded a 1% drop on the same period last year, its weakest YoY performance in 2015. However there were more positive figures recorded in the health & beauty, gifts, and home sectors, which were up 30%, 23% and 31% YoY respectively.

Sales made via a mobile device saw an increase of 33% in August. The Index revealed an emerging trend in regard to the split of mobile device used for making online sales. In 2014, smartphones accounted for 20% of m-retail sales, compared to 80% made via a tablet device. In 2015, the balance has shifted, with 28% of sales made via a smartphone, compared to 72% made on a tablet.

Alex Smith-Bingham, Head of Digital, Consumer Products and Retail, Capgemini, commented: “The height of summer usually drives customers online or in-store to update their wardrobes in preparation for their holidays or simply to make the most of the British sunshine. However, with just 5% growth, for both the clothing sector and the wider industry, the disappointment of August’s performance would have been felt across the whole retail sector. We predict this will be short-lived however, as the late Bank Holiday and back-to-school shopping should give September’s Index a significant boost.

Tina Spooner, chief information officer, IMRG: “2015 was slow to start for online retail sales, and we wondered whether we had entered a new phase of lower growth when the Index recorded its first-ever quarter of single-digit growth (+7%) in Q1. However, growth has been far more positive since then and it’s likely that the record August low was actually a blip caused by a number of factors. A feature of 2015 has been lower average basket values, but over the past two months these have recovered and conversion rates remain at their highest level in years as we approach the crucial peak period.

“Looking ahead, we expect September’s Index results to be back on track with our 2015 growth forecast, considering it will on the back of single-digit growth during September 2014”

-ENDS-

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, Amara, Appliance House, Arcadia Group (Burton, Top Man, Top Shop, Dorothy Perkins, Evans, Wallis, Miss Selfridge), Ask Direct, ASOS.com, B&Q, Ben Sherman, Berry Bros & Rudd, Blacks, Boden.co.uk, Boots, Brora, Buyagift.com, Carphone Warehouse, Charles Tyrwhitt, Clarks, Clinkards, Crocus.co.uk, Dabs.com, Damart, Debenhams, Deckers, Dunelm Mill, Effortless Skin, Ethical Superstore, Feelunique.com, Firebox, First Choice, Freemans Grattan Holdings (Freemans, Grattan, Look Again, Kaleidoscope, Curvissa, Swimear365, Witt International UK), Game, Get The Label, Greenfingers.com, House of Fraser, HouseTrip.co.uk, JD Sports, JD Williams, John Lewis Partnership, Ladderstore.com, Lakeland Furniture, Liz Earle, LK Bennett, M and M Direct, Majestic Wine, Marks & Spencer, Millets, Moss Bros, Naked Wines, NaturalCollection.com, New Look, Next, Notonthehighstreet.com, PetPlanet.co.uk, PetsPyjamas.com, Pitchup.com, Prezzybox.com, QVC, Sainsbury’s, Scales Express, Schuh, Scotlight Direct, Scott, Screwfix.com, Shoe-Shop.com, Shop Direct Home Shopping (Littlewoods, Very, Very Exclusive, Isme), Serenata Flowers, Silentnight, Size, Sofa and Home, Sparkling Strawberry, Sunshine.co.uk, Tesco.com, The Body Shop, The Great Gift Company, The Mat Factory, The White Company, TUI UK, Turton Wines, Universal Music, Waitrose, Wilkinson Hardware, Within Home, Woods of Shropshire & Wynsors World of Shoes.
About IMRG
For over 20 years, IMRG (Interactive Media in Retail Group) has been the voice of e-retail in the UK. We are a membership community comprising businesses of all sizes – multichannel and pureplay, SME and multinational, and solution providers to industry.
We support our members through a range of activities – including market tracking and insight, benchmarking and best practice sharing. Our indexes provide in-depth intelligence on online sales, mobile sales, delivery trends and over 40 additional KPIs.
Our goal is to ensure our members have the information and resources they need to succeed in rapidly-evolving markets – both domestically and internationally.
www.imrg.org
About Capgemini
Now with 180,000 people in over 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2014 global revenues of EUR 10.573 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience^TM, and draws on Rightshore^®, its worldwide delivery model.
Learn more about us at www.capgemini.com.

Rightshore^® is a trademark belonging to Capgemini

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IMRG Capgemini e-Retail Sales Index: Weakest August in 15 years for online retail sales

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