UK online retail sales slump to lowest ever July growth
After a decent June, UK online sales growth clocked in at just +4.4% year-on-year in July and fell by 5.7% month-on-month (MoM), according to the latest IMRG Capgemini eRetail Sales Index which tracks over 200 retailers.
Despite the scorching weather and major events like Amazon Prime Day, these figures represented the lowest ever July YoY increase, and came in well below the three-month, six-month, and 12-month rolling averages (respectively +4.9%, +4.9%, +6.5%).
Andy Mulcahy, Strategy and Insight Director, IMRG, says: “Online sales growth had been subdued throughout the first half of 2019, but in June there seemed to be a bit of a bounce-back that hinted toward growth picking up again. However, there is now evidence that the June performance was artificially inflated by heavy discounting to stimulate sales activity, and it seems likely that some of that volume was pulled forward from July.”
Bhavesh Unadkat, Principal Consultant in Retail Customer Engagement, Capgemini, comments: "The outlook remains uncertain for retailers into half two as consumer spending is cautious and confidence low, yet GFK has reported that the major purchase index has increased six points back into positive territory this month.”
“This could hint that customers will be more willing to make considered purchases over the coming months rather than impulse buys. As we lead into the peak season retailers will therefore need to focus on winning share of wallet amongst an increasingly competitive online market.”