Online retail growth stronger than anticipated - report
Online retail has seen stonger than anticipated growth in the first half of the year in stark contrast to the high street, figures show.
Sales were up 16.8% year on year during the first half, according to the Capgemini IMRG eRetail Sales Index, while the average basket value was also at its highest for the decade at £94 to outshine the five-year average of £85.
Online retail grew by 15.3% year on year between January and March as the extreme cold weather kept shoppers away from the high street and drove them to spending from the sofa.
However, as the weather picked up and the UK experienced hotter temperatures in April online retail sales went from strength to strength to record 18.2% growth year on year in the three months to June.
The garden sector enjoyed year on year growth of 24.9% overall, its strongest first half since 2014, while clothing recorded 16.3% growth in the first quarter and 17.8% growth in the second.
Spending via smartphone devices was up 39% against last year's second quarter, although the index shows growth rates are starting to slow.
Andy Mulcahy, strategy and insight director at IMRG, said: "The performance for online sales in the first half of the year has been a lot stronger than anticipated.
"There are a number of factors that may be influencing that - the extreme weather events, both hot and cold, the Royal Wedding, the World Cup - and it might be possible that the feel good elements associated with some of those events has encouraged people to spend a bit beyond their means.
"This could mean that we see a pinch on shopper spend as we move through the third quarter - though the weather in July has been incredibly hot - which may lead to an imbalance in online retail growth between the first and second halves of the year."
Bhavesh Unadkat, principal consultant in retail customer engagement at Capgemini, said: "The year started with a lot of doom and gloom and uncertainty around retail.
"What has been encouraging is how well online retail has performed in the first half, particularly in seasonal categories like clothing and garden.
"These two sectors have delivered higher basket values with consumers becoming impulsive in their purchases as they refreshed summer wardrobes and prepared for more time spent outside."
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