Discounts Boost As Online Sales Reach Strongest Growth For Two Years, Says IMRG

Online sales rose 20 per cent in June amid as discounts attracted shoppers an amid signs of economic recovery.

The increase was the strongest rise for two years, according to the IMRG Capgemini e-Retail Sales Index. The combined effect prompted a 2.4 per cent rise between from May to June, the first time the index has seen an increase in that period for five years.

Retailers have been forced to clear unsold stock left over from an unseasonably cold spring leading to stock backlogs both on and offline. 

But consumers still appear to be under some pressure as inflation outstrips wage growth and average basket size fell 9 per cent to £79 from £87 a year earlier - which suggests consumers are spending less in one trip but making more frequent purchases.

Online clothing sales rose 29 per cent in June and sales of home and garden products increased 35 per cent as both sectors caught up after the cold start to the season. The value of travel bookings grew 15 per cent.



Mobile commerce increased 136 per cent in June and 8 per cent compared to May. Conversion rates via mobile devices also showed strong growth, rising to 2.03 per cent in June from 1.27 per cent the same month a year ago.

Total online sales growth in the second quarter of the year has increased 17 per cent, according to the index.

Tina Spooner, chief information officer at the IMRG, said: 'The strong growth last month was driven by a strong performance in clothing, perhaps as a result of heavy discounting. However, the UK online retailer market has performed remarkably consistently throughout 2013 so far which may signify an overall improvement in consumer confidence.'

Chris Webster, vice president head of retail consulting and technology at Capgemini, said: 'This is in stark contrast to the continued decline in store footfall reported by the British Retail Consortium over the first half of the year and amplifies the increase of online at the expense of store sales.'

He added: 'In addition, Britons remain price-concious, but we have responded well to good deals found online and it's good to see consumer confidence returning.'