E-retailers report bumper sales in May

UK shoppers spent £4.5bn online in May

The latest figures from industry body IMRG and consultancy Capgemini reveal that May was something of a record month for online retailers.

The companies credited the World Cup with much of the increase, which it said had led to the highest rate of growth in two years.

Rising temperatures also contributed as many shoppers elected to buy items like alcohol online. Overall, UK shoppers spent £4.5bn online in May, equating to roughly £73 per person.

"With online sales growing at their highest rate in almost two years, this is good news for the e-retail industry," said Tina Spooner, director of information at IMRG.

"The fine weather in late May, together with the build up for the World Cup, appears to have had a positive impact for e-retailers."

Alcohol sales increased by 23 per cent, and electronics by 13 per cent on the back of flat screen television sales. Sportswear, again possibly related to the football, saw the biggest increases, pushing growth in the clothing, footwear and accessories sector of 32 per cent.

"Throughout the history of the IMRG Capgemini Index, we have seen a noticeable rise in sales of certain goods whenever there is a major sports tournament," said Chris Webster, vice president of retail consulting and technology at Capgemini.

"This year's World Cup is no exception, with online retail as a whole growing by the highest level in two years."

Customer conversion rates also rose, according to the IMRG. Retailers reported that 16 per cent more 'browsers' had been converted into shoppers when compared to the same time last year.

However, only those firms with a multi-channel approach are really capitalising on the gains, according to the IRMG, which recommended that stores reach out to customers in a variety of ways.

The figures show that multi-channel vendors increased growth by 30 per cent, while web-only firms grew by just 11 per cent.

"May was another fantastic month for John Lewis online as we continued to drive forward our strategy of adding to our online assortment, improving the customer experience on the site and in our multi channel approach, and expanding our integrated marketing effort," said Jonathon Brown, head of online selling at John Lewis Partnership.

"This delivered a 47 per cent year-on-year increase with star performances across all categories."

However, some warned that there could be tough times ahead for the e-commerce industry.

"There are fears that the emergency budget may impact both consumer confidence and the retail industry," said Michael Norton, managing director of online payment provider PayPoint.net.

"The prospect of a raise in VAT to 20 per cent will have a considerable impact with recent figures suggesting it would raise £36bn from the retail industry.”