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Online Sales Jump 18%. Can this all be down to a bit of rain?by Andrew Redfern @ 20th August 2010 11:46 am online retailing IMRG today announced that internet sales during July have grown at the fastest pace since before the recession began in 2007.
IMRG is an industry body for global e-retailing and the IMRG Capgemini Index results come from analysis of online sales of over 100 retailers in the UK.
The figures show that online sales for July were up 18% on the figures for July 2009 with many reports today blaming the wet weather for keeping shoppers at home.
While there is no doubt that shoppers are more likely to shop from home during periods of inclement weather and that the 18% rise from July 09 can be partially attributed to the unusually wet weather we have all experienced during July it by no means tells the whole story.
Overall retail sales grew by 1.1% from June which we all remember was a very hot month which indicates that wet weather doesn’t put too many people off going to the high street.
The bigger story seems to be that online retailers are coming out of the recession in a stronger position than their high street counterparts and are set to continue to increase their overall share of the retail sector.
“Although online retail sales survived the recession more convincingly than High Street sales, the last two years or so have no doubt been shaky at time.”
“It is really encouraging to see growth levels returning to those seen pre-2007 and before consumer confidence was knocked by the financial crisis and the recession” said Chris Webster from Cap Gemini, which publishes the online sales index with IMRG
Whatever the reason for the dramatic 18% growth from July 09 it seems that the recession is coming to an end for the online retail market even if some other sectors of the economy are in trouble. BBC dot.life : Online retail traffic growth increasing despite the gloomby Andrew Redfern @ 15th January 2009 12:18 pm online retailing Rory Cellan-Jones of the BBC has posted an interesting article on their dot.life blog. It notes a huge increase in online retailing in the last quarter of 2008 compared to 2007 whilst the British Retail Consortium issue figures saying they’d seen “Worst December in [the] Survey’s History”. The article quotes figure from Neilsen Online and says “No surprise that Amazon is at the top of the list with a monthly audience of 15.6 million. But that was a rise of just 18% on the previous year, whereas the figures for some traditional retailers were far more spectacular. Argos saw its audience rise by 32%, Marks and Spencer had a 46% rise and Littlewoods’ audience was up 66%.” So it seems that people are being very cautious when it comes to the high street and this is pushing people toward bargain hunting online. Despite the gloom over the top-line figures The British Retail Consortium see a similar trends to Neilsen stating “non-store sales in December were 30.0% higher than a year ago” so it would seem that the traditional retailers are gaining significant growth from their online presence whilst seeing a massive fall from their core business model. All this underlines the importance of online, it could be argued that the sudden freezing of their web revenue stream was instrumental in Zavvi’s collapse. Rory finishes with an interesting point “Back in the late 90s the dotcom evangelists told us that online start-ups would crush the dinosaurs of retailing and leave the shopping malls and high streets deserted. That didn’t happen - but a decade later the online retail revolution is finally happening. And funnily enough, the dinosaurs are now leading the charge.” This period, with it’s contrasting fortunes for high street and online divisions, will be analysed long and hard but it will be an interesting benchmark in growth on online retailing. Would you like to know more about online retail? If so, contact Hit Search, SEO and Google adWords qualified PPC specialists, on 0845 643 9289. Remember, its a big world out there, make sure you become visible. Other Related Stories That May Be Of Interest:
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