Industry

Online sales grew by 18% in June: IMRG

Retailers that sell across a range of sales channels were the winners as online sales grew by 18% in June, suggest new figures from the IMRG [IRDX VIMR], the trade association for online and multichannel retailers.

For while shoppers spent £9.3bn online during the month, 18% more than at the same time last year, found the IMRG Capgemini e-Retail Sales Index for June, multichannel retailers saw their online sales grow by 21% while online-only retailers saw revenues grow by 13%. Those who optimise for mobile devices also benefited as m-commerce sales grew by 57%. Sales on smartphones grew at a rate that was more than double the growth for tablet computers.

Steve Hewett, head of retail customer engagement and loyalty at Capgemini Consulting [IRDX VCPG], said links between the store and digital had boosted multichannel retailers as consumer confidence rose.

“I’m particularly interested to see the impact click and collect services have had on the performance of multichannel retailers compared to their online only counterparts,” he said. “Capturing their customers’ delivery needs has helped build a stronger connection between retailer and consumer, which is ultimately being reflected at the cash register. It will be key for the online community to capitalise on the current consumer confidence and find a way to build the same level of connection.”

The results also mark the strongest June month-on-month (MoM) growth since June 2003, reflecting the ongoing increase in UK consumer confidence. Sales grew by 2.7% in June, compared to May. The total first-half growth reached 11%, with sales in the second quarter, between April and June, up by 14%. That’s double the 7% growth seen during January and March.

Sales were strong in fashion and travel, among other sectors. Sales of clothing in June reached a year-on-year increase of 18% – the category’s highest rate since November 2014. The travel sector was up 25% – its highest growth this year, and its third highest annual growth since the Index began recording travel in December 2009.

Tina Spooner, chief information officer at IMRG, said: “During the first quarter of this year we were speculating as to whether online retail was entering a new phase of lower growth rates – with Q1 up just 7% on the same period in 2014. However, in Q2 sales growth has jumped up to 14% on that recorded in Q2 2014 – which is all the more interesting as this period included a highly uncertain general election. June brought the strongest performance of the year so far, no doubt buoyed by the consistent summer weather which also saw the highest growth for the clothing sector so far in 2015. It may be that the slowdown we recorded during Q1 was a blip caused by a number of factors and actually consumer confidence has risen sufficiently to keep online sales growth at this higher rate throughout the summer period and moving into peak.”

Mentioned in this piece…

IMRG

IMRG

IRDX: VIMR

Their membership community comprises businesses of all sizes – multichannel and pureplay, SME and multinational, as well as suppliers to the industry. (more…)

Capgemini

Capgemini

IRDX: VCPG

CapGemini S.A. is a French multinational corporation headquartered in Paris, France. It provides IT services and is one of the world’s largest consulting, outsourcing and professional services companies with more than 130,000 employees in 44 countries. (more…)

3 comments on “Online sales grew by 18% in June: IMRG

  1. Pingback: Burberry, Halfords, Sports Direct, Dixons Carphone and IMRG on the multichannel advantage | Internet Retailing

  2. It is not surprising to see such a growth in online sales for June, with multichannel retailers seeing the most proficient growth at 21%; 8% more than online-only retailers. Not only does multichannel present consumers with a choice of platform when it comes to shopping or browsing, but this choice also means that consumers’ varying needs are being recognised, and retailers are consequently being rewarded.

    This therefore shows how important it is for retailers to not only adopt a multichannel retail strategy but also an omnichannel strategy that brings together every experience, across every channel. Having the channels available is the first step in a bigger journey. Once the platforms are in place, retailers must work hard to seamlessly link the experience for each individual consumer. Those retailers who don’t, simply run the risk of losing potential customers that will inevitably shop elsewhere if they don’t receive the experience they require.

    Eric Fergusson, Head of Retail Services, eCommera

  3. Daniel Martin said:

    With m-commerce sales growing by a staggering 57% in June, it’s clear that retailers need to recognise that the mobile device is now the hub of all customer interactions via a multitude of channels and create a consistent, optimised and personalised experience across every channel.

    However, fundamental changes in consumer behaviour make it impossible to consider mobile in isolation. While the traditional desktop customer was typically either browsing or buying, the same cannot be said of the mobile consumer.

    It is the organisations that understand the entire customer journey; determine how best to engage the customer at each stage of that journey and how to deliver a consistently good experience that will be able to create a multichannel strategy that sits firmly within the overall business model and, as a result, delivers companywide rather than just channel-specific revenue uplift.

    Daniel Martin, Head of Retail EMEA, Maxymiser

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