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UK e-sales hit three-year high in July

by Dan Worth

20 Aug 2010

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The latest e-commerce figures suggest a return to pre-recession spending

UK shoppers spent a whopping £5bn online in July, a rise of 18 per cent on the same month in 2009, according to the latest figures from industry body IMRG and consultancy Capgemini.

The e-Retail Sales Index report found that the average online spend per person was £81 in July, up 14 per cent on June.

The travel sector accounted for much of this growth, rising 32 per cent on the previous month as unseasonable weather sent Brits flocking abroad.

The bad weather also encouraged shoppers to avoid the high street, benefiting all businesses with online stores.

Chris Webster, head of retail consulting and technology at Capgemini, said that the figures point to a return to pre-recession spending.

"In the last 10 years we've seen huge growth in online sales, which slowed in the last few years due to the recession. It's starting to return now to around 20 per cent per year and will continue to rise for the next eight to ten years, up to 30 percent," he said.

"As consumers become more accustomed to shopping online, and devices like smartphones or the iPad help improve the online experience, along with the increasing role that social media sites, like Facebook, have in sending people to retail stores online."

Webster added that for most firms the sheer demand for online retail would help them achieve organic growth, but argued that firms that took a proactive approach to providing the best possible online experience would see the biggest growth.

He also noted that there was now a gulf appearing between the revenues of multi-channel players and pure-play websites, as high-street retail stores realise the value of investing in a better website to entice customers back and enhance loyalty.

"In the beginning large firm's like John Lewis probably saw little sales through the website so didn't invest heavily in a website. Now, though, with sales rising they are offering more and getting returns from these improved services and interactions," he said.

"Meanwhile, the pure play firms are looking overseas more and more, such as ASOS, which now delivers to 180 countries. As the internet removes so many barriers to entry, many firms are taking advantage of this to tap into new customers."

The IMRG Capgemini Index tracks online sales at more than 100 retailers across the UK.

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