E-commerce sales rise again in July

Clothing retailers led the surge in online sales in July

E-commerce sales showed encouraging growth in July, as UK shoppers spent £4.2bn online in an early sign of economic recovery.

The latest figures from the e-Retail Sales Index compiled monthly by industry body IMRG and consultancy Capgemini, suggest that sales for July were up 15.7 per cent on June and 16.8 per cent on the same period last year.

The Clothing, Footwear and Accessories sector continued to drive the industry, with growth of 18 per cent month on month and 17 per cent year on year, according to the report.

Clothing retailers have also turned around their fortunes, seeing online conversion rates increasing to one in 15 people in July.

"Online retail continues to outperform the high street, with e-retail growth in July exceeding the yearly growth seen in July 2008," said IMRG director of information Tina Spooner.

"It is evident that online merchants are becoming more sophisticated in their marketing efforts and email communications to their customers, the result of which can be seen in higher conversion rates, particularly in the clothing sector."

However, despite witnessing continued growth in the industry, IMRG predicted last month that online retail growth will shrink from 15 per cent to 12 per cent in the second half of the year as the recession further weakens consumer spending on the web.