Online sales growth strengthens in July

Monday, August 22, 2016 - 15:35 by Graham Miller

More people were benefiting from safe shopping online in the UK last month than at any point in the past. Sales increased by almost a fifth, according to the latest figures from IMRG Capgemini.

Analysts also revealed that there was a fall in the average basket value, in many cases attributable to retailers employing discounting strategies in order to stimulate sales.

The Mirror reports that the warm weather was seen as being one of the contributing factors, with clothing sales up by 22 per cent as people splashed out on new garments to help them enjoy the arrival of summer after a particularly wet June.

This is reflected by the 39 per cent boost in garden ware sales, while homewares saw an even more impressive 50 per cent increase in consumer activity last month.

Across the entire e-commerce market the only category to suffer a minor decline in sales was alcoholic beverages, reducing by just a single percentage point compared to the same period last year.

Report spokesperson Bhavesh Unadkat pointed out that this level of growth has not been seen for almost two years, showing that experts had actually underestimated the strength of the e-commerce market at the moment.

He also said that falling prices on popular products and a range of good offers provided by retailers were key factors in the better than expected performance.

This suggests that even in the wake of the Brexit vote, consumer confidence remains relatively strong in the UK. Or that the impact of this decision has yet to take effect, with the lack of action on the part of the Government suggesting that business will continue as usual until Article 50 is finally triggered. Or not, as the case may be.

The UK’s established trend of safe shopping online is clearly going from strength to strength and even with predictions of slower growth on the horizon, analyst expectations continue to be confounded.