Online sales growth a sign of consumer confidence

Published on Monday 24 August 2009 21:35

ONLINE sales showed a significant increase last month amid signs of returning consumer confidence, according to research published today.

Shoppers spent 4.2 billion online in July, 15.7 per cent more than was spent in June and 16.8 per cent ahead of July 2008.

The driving force for the increase appeared to be the clothing sector, which showed growth of 18 per cent month-on-month and 17 per cent year-on-year, the latest IMRG Capgemini e-Retail Sales Index said.

The report suggested that, in the past six months, consumers have been encouraged by new summer lines and heavy discounting and promotions.

Clothing retailers have also been effective in turning more visits to their websites into final purchases in July, due to more sophisticated targeting strategies to shift summer stock for autumn fashions.

Online sales of electrical items also rose – up by 11 per cent from June – with twice as many men shopping online compared to women.

Cameron McLean, of online payment service PayPal, said: "Men love the quick and efficient nature of the internet, especially when it comes to buying technology and gadgets.

"The average online spend over the last six months was 2,602 for men compared to 1,930 for women.

"Men, in fact, spent more than women in every category except groceries and clothing, suggesting that the female pound is still responsible for the growth in online sales of clothing, accessories and footwear year-on-year."

The report also showed that sales of alcohol online tumbled in July, as drinkers were forced to cancel picnics and barbecues due to heavy rainfall. Sales fell 15 per cent month-on-month and 23 per cent year-on-year.