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E-commerce weak in June

Cherry Reynard
Written By:
Cherry Reynard
Posted:
Updated:
05/12/2014

Online retail sales showed a rare moment of weakness in June, with experts blaming the UK’s early exit from the World Cup.

Online sales showed year on year growth of just 9% in June, according to the latest figures from IMRG Capgemini, the lowest annual growth since July 2013. This represented a 5% drop from May to June, the steepest since 2008.

Electrical and travel purchases showed particular weakness as British shoppers avoided splashing out on expensive luxuries. The Travel sector saw a year on year increase of just 3%, its lowest annual growth since July 2013, and Electricals just 7%. IMRG Capgemini argues that the results reflect the current dip in consumer confidence.

However, the annual growth figures had difficult comparative figures, after a particularly strong June 2013, and the overall performance in the first half of the year has been positive, with online sales up 16%.

Tina Spooner, Chief Information Officer at IMRG, commented: “Football fans clearly stocked up their fridges in anticipation for the World Cup, as the Beers, Wines and Spirits sector surged 20% year-on-year last month, and the 17% growth we saw from May to June was the steepest jump between those months we have ever seen in this sector. But during the week England were knocked out we saw a distinct 15% drop in alcohol sales as fans were denied the chance to raise a glass to a repeat of 1966.

“It’s fair to say June was not a good month for British sport and the poor performance in the Electricals sector – with growth of just 7% year-on-year – suggests Britons were not too interested in buying new technology to watch the action, while higher than average temperatures and lots of sunshine kept customers outdoors”.

Chris Webster, VP, Head of Retail Consulting and Technology at Capgemini, said: “The figures reveal just how influential a turbulent economy can have on our shopping behaviour. The current uncertainty around interest rates has resulted in a dip in consumer confidence, and as a result, we’re still happy to buy the everyday items, but we’d prefer to hold off on those expensive treats.”