The latest figures from the IMRG Capgemini e-Retail Sales Index have revealed the impact sunshine and football fever had on online retail sales in May, recording a growth of 17% year-on-year. This equates to £8.2 billion spent online, as British shoppers splashed out on new clothing and electrical items to enjoy the World Cup.
According to the figures, the electricals sector surged 19% in May, but based on previous performances during major summer football tournaments, IMRG and Capgemini predicts the World Cup could result in a 30% increase in sales during June. The previous World Cup in 2010 and the European Championships in 2012, resulted in an increase of 26% and 35% respectively as football fans upgraded their TVs to watch their teams.
IMRG chief information officer Tina Spooner commented: “Once again, the UK online retail market recorded solid annual growth last month, and excluding travel sales, the impressive 20% year-on-year performance is well ahead of our 2014 growth forecast. Consumers are also spending more when shopping online with the average basket value in May reaching £88, the highest level recorded in two years.”
She added: “As with all major sporting events, retailers are gearing up for the World Cup and over the coming weeks we expect to see a surge in sales of televisions and home entertainment systems as football fans hope to see England progress to the final stages of the competition from the comfort of their own homes”.
Capgemini VP head of retail consulting and technology Chris Webster said: “The Index continues to be a bellwether for the UK economy and consumer behaviour. This month it has illustrated just how influential large sporting events can be on the retail sector and how World Cup fever has well and truly gripped the UK. This has resulted in an increase in the sale of electrical items which will have grown further in the first half of the month. Just how long that growth continues may well depend on how far England progress through the tournament as patriotic fans invest in bigger and better TVs to cheer on their team.”