{"id":538938,"date":"2019-06-20T07:55:00","date_gmt":"2019-06-20T07:55:00","guid":{"rendered":"https:\/\/www.capgemini.com\/gb-en\/?post_type=press-release&#038;p=538938"},"modified":"2025-03-10T10:44:39","modified_gmt":"2025-03-10T10:44:39","slug":"imrg-capgemini-eretail-sales-index-online-retail-sales-in-may-suffer-worst-growth-on-record","status":"publish","type":"press-release","link":"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/imrg-capgemini-eretail-sales-index-online-retail-sales-in-may-suffer-worst-growth-on-record\/","title":{"rendered":"IMRG Capgemini eRetail Sales Index: Online retail sales in May suffer worst growth on record"},"content":{"rendered":"\t\t<div class=\"wp-block-cg-blocks-hero-press-release\">\n\t\t\t<header class=\"header-hero-press-release\" role=\"main\" id=\"main-content-press-release\">\n\t\t\t\t<div class=\"container\">\n\t\t\t\t\t<div class=\"hero-press-release\">\n\t\t\t\t\t\t<div class=\"hero-press-release-content-wrapper\">\n\t\t\t\t\t\t\t<div class=\"row\">\n\t\t\t\t\t\t\t\t<div class=\"col-12\">\n\t\t\t\t\t\t\t\t\t<div class=\"header-title\">\n\t\t\t\t\t\t\t\t\t\t<h1>\n\t\t\t\t\t\t\t\t\t\t\tIMRG Capgemini eRetail Sales Index: Online retail sales in May suffer worst growth on record\t\t\t\t\t\t\t\t\t\t<\/h1>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"header-description\">\n\t\t\t\t\t\t\t\t\t\t<p><\/p>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"header-date\">\n\t\t\t\t\t\t\t\t\t\t<span>Jun 20, 2019<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/header>\n\t\t<\/div>\n\t\t\n\n\n<section class=\"wp-block-cg-blocks-intro-para undefined section section--intro\"><div class=\"intro-para\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/imrg-capgemini-eretail-sales-index-online-retail-sales-in-may-suffer-worst-growth-on-record\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/imrg-capgemini-eretail-sales-index-online-retail-sales-in-may-suffer-worst-growth-on-record\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><h2 class=\"intro-para-title\">After disappointing weather and no Royal weddings in the social calendar, May continued the discouraging 2019 trend of below-average sales growth, with just +1.9% Year-on-Year (YoY), according to the latest <em>IMRG Capgemini eRetail Sales Index.<\/em> When compared to this time last year, which saw the strongest May growth for online retail since 2010, the state of online retail remains rather tough.<\/h2><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-11 col-lg-10 offset-md-1 offset-lg-1\"><div class=\"article-text article-quote-text\">\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Further sector analysis in May shows a number of categories struggling significantly. Electricals (-27.5%) and Gifts (-18.5%) continue the downward trend we have seen since last November and September respectively. Surprisingly BWS recorded the first negative growth for the year reaching a staggering -19.7%.<\/p>\n<\/blockquote>\n\n\n\n<p>Clothing has had a much slower growth rate vs. last year\u2019s performance (+8.2%): Menswear was down -13.3% against very strong results last year (+23%) and Womenswear (-4.8%) continued the trend of single digit or negative growth this year. Accessories, which has seen successful growth in previous months, has now reported its worst performance in 10 years; down -20.0% YoY. Footwear was the only clothing sector to see positive growth (+6.7%).<\/p>\n\n\n\n<p>However, the Health &amp; Beauty sector continued its a strong monthly performance with +22.6% compared to +2% total vs last year, with the explosion of consumers focusing their attention on health and wellbeing as well as the rise in celebrity beauty endorsements.<\/p>\n\n\n\n<p>Despite last month\u2019s dramatic drop, m-commerce is up in May by +8.4% with Smartphones reaching +35.0% and tablets flat at +0.3% against last year.<\/p>\n\n\n\n<p><strong>&nbsp;Andy Mulcahy<\/strong>, strategy and insight director,&nbsp;<strong>IMRG<\/strong>, said: <em>\u201c<\/em><em>When tracking the movement of something in an index, you sometimes get results that are a bit skewed by the growth rate you are comparing against. May 2018 was one such month \u2013 with the early summer heatwave, Royal Wedding and a World Cup looming, people seemed happy to spend out pretty lavishly on retail, so May 2019 was always going to be anchored by it. That said, 1.9% growth is far lower than we might have expected; indeed, it\u2019s the lowest since we started tracking nearly 20 years ago, so it seems there is something more going on here.<\/em><\/p>\n\n\n\n<p><em>\u201cThe fact is that retailers are caught in a perfect storm at the moment \u2013 with all the problems on the high street, changing customer behaviour, shopper confidence low due to all the CVAs and negative coverage of major brands, a shifting competitive landscape; and of course even the weather is refusing to provide any relief. It\u2019s proving tough to find any positives in the sales performance at the moment.\u201d<\/em><\/p>\n\n\n\n<p><strong>Bhavesh Unadkat<\/strong>, principal consultant in retail customer&nbsp;engagement,&nbsp;<strong>Capgemini<\/strong>, said: \u201c<em>The health and beauty sector is a standout category in a tough month, reporting +22% compared to +2 total vs last year. Wellness and wellbeing have become a high focus area amongst consumers. Therefore, at a time when there is limited disposable spend, this could be impacting other categories such as clothing.&nbsp;<\/em><\/p>\n\n\n\n<p><em>\u201cOver the last few years Health and Beauty brands have responded to the increased demand for natural ingredients and attention on environmental impact through exciting developments in product innovation, marketing and consumer experience.&nbsp; Digital has also had a big role, responding to raised social awareness and innovation in technology which has paved the way for initiatives for growth in this space, for example Wearables like Mapo and Fitbit are great examples of this as well as the creation of new business models like the face gym and the increased importance of influencer campaigns.&nbsp; This plays well into the share of online sales; Kantar has reported that online penetration for cosmetics has increased to 21%.<\/em><\/p>\n\n\n\n<p><em>\u201cTherefore, when wallet share is being fought over, adapting to customer needs and what is important to them is key; if other sectors can integrate these principles into their offering to differentiate, diversify, and better engage shoppers there will be a greater chance of them staying ahead of the game.<\/em>\u201d<\/p>\n\n\n\n<p><strong>\u2013 ENDS \u2013<\/strong><\/p>\n\n\n\n<p><strong>About the \u2018IMRG Capgemini e-Retail Sales Index\u2019<\/strong><\/p>\n\n\n\n<p>The IMRG Capgemini Index, which was started in April 2000, tracks \u2018online sales\u2019, which we define as \u2018transactions completed fully, including payment, via interactive channels\u2019 from any location, including in-store.<\/p>\n\n\n\n<p><strong>About IMRG<\/strong><\/p>\n\n\n\n<p>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 \u2013 multichannel and pureplay, SME and multinational, and solution providers to industry.&nbsp;We support our members through a range of activities \u2013 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.&nbsp;Our goal is to ensure our members have the information and resources they need to succeed in rapidly-evolving markets \u2013 both domestically and internationally.&nbsp;<a href=\"http:\/\/www.imrg.org\/\">www.imrg.org<\/a><\/p>\n\n\n\n<p><strong>About Capgemini<\/strong><\/p>\n\n\n\n<p>A global leader in consulting, technology services and digital transformation, Capgemini is at the forefront of innovation to address the entire breadth of clients\u2019 opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. It is a multicultural company of over 200,000 team members in more than 40&nbsp;countries. The Group reported 2018 global revenues of EUR 13.2 billion.<\/p>\n\n\n\n<p>Visit us at <a href=\"http:\/\/www.capgemini.com\/#_blank\">www.capgemini.com<\/a>. <em>People matter, results count.<\/em><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n<div class=\"wp-block-cg-blocks-cg-block-related-content\"><section class=\"relatedContentBlock\"><div class=\"container\"><div class=\"row\"><div class=\"content-title col-12 col-md-8\"><h2 class=\"related-content-heading\">Related News<\/h2><\/div><\/div><div class=\"row relatedContent\"><div class=\"col-lg-4 col-md-6 col-xs-12\">\n\t\t\t\t\t\t\t<div class=\"box\">\n\t\t\t\t\t\t\t\t<a aria-label=\"Read more about Capgemini becomes the Official Digital Transformation Partner of Rugby Football Union\" href=\"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/capgemini-becomes-the-official-digital-transformation-partner-of-rugby-football-union\/\" class=\"anchorWrapper\">\n\t\t\t\t\t\t\t\t\t<span 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