At least somebody’s happy it’s a wet English summer
I started to write this post last week when I was deep in depression about the miserable summer we were having here in England at the moment. But the gorgeous sunshine this weekend has changed all that and I’m feeling a lot better - but I still think this post is interesting so here goes….
Reports from the IMRG in the last few days have confirmed a massive spike in online sales in July, up 80% on last year. For the first time, UK e-retail sales exceeded £4 billion in a month (£4.2bn) - that’s a massive £1.86 billion higher than in July 2006.
The highest sales growth in July was seen by electricals retailers as people bought items online for their summer holidays. Clothing sales were also strong online - the IMRG Clothing / Footwear / Accessories Index was 56% higher than a year earlier.
Several factors contributed to July’s very strong growth, including the very wet weather which discouraged people from travelling and encouraged them to shop online (unfortunately in many cases to replace water-damaged goods).
Many retailers also reported rising numbers of new customers as a result of the still strong uptake of domestic broadband, and because existing internet shoppers are expanding their online buying activity as they become more confident in using the channel.
“IMRG was surprised by the strength of July’s growth, so checked and rechecked the figures …then checked them again,” advises Jo Evans, IMRG’s managing director. “This data is sound. It reveals the extent to which the retail sector is being transformed by frictionless e-commerce. Major brands are bringing on-stream the next generation of slick new internet retailing services, and consumers are flocking to use them. It’s big players’ success that is now driving e-retail growth and boosting the Index.”
I’ll be interested to see how August and September turn out. Traditionally these two months have also suffered from the ’summer holidays’ effect and taken a downturn as shoppers abandon computers and head off (abroad usually) in search of the sun. Watch this space!