Online Retail Sales Up By 16%
Yesterday I came across the latest IMRG Capgemini e-Retail Sales Index report, which showed that in May, UK online retail sales scored an “impressive” year-on-year growth of 16%; up 5% on April 2013.
The figures confirm that online pure-play retailers performed stronger than their multi-channel rivals, recording an annual improvement of 18% last month, ahead of the 16% increase displayed by retailers operating both online and offline. According to IMRG, this means that consumers’ trust in Internet as a shopping medium is on the rise, chiefly due to an enhanced adoption of new technology and services rolled out by e-retailers.
Conversion rates for categories (excluding travel) advanced to 4.9% last month, pointing to a 20% increase compared with the same period last year. Meanwhile, the average basket value kept declining, which slipped to £77 from £83 in 2012 and £86 in 2011. The continuing fall could be a sign that consumers now tend to look for bargains online and to are leaning towards purchasing the cheaper options – expanding sales whilst reducing average basket value.
The warmer weather gave the clothing sector a huge boost as consumers felt encouraged to buy summer outfits to update their wardrobes, with sales going up by 16% year-on-year. The home and garden sales exhibited a 41% jump in sales on a like-for-like basis.
Mobile commerce saw its weakest growth rate since IMRG started tracking sales in the segment, rising by 148% from May 2012.