UK online retail sales slipped to their lowest year-on-year growth in 2018 so far this July, as consumer spending slumped in the weeks following England’s FIFA World Cup exit.
According to the latest IMRG Capgemini e-Retail Sales Index, online sales increased by just 10% year on year in July, well below the three, six and twelve month rolling averages of 14.7%, 15% and 12.7% respectively.
This follows a good first half to the year for online retail, which saw record growth in the six months to June 31.
The trend looked set to continue after the first week of July, with sales up by 14.4%
However, after England’s semi-final exit on 11 July, it took a dramatic turn and even Amazon Prime Day could not prevent growth shrinking to 3.7%, 8.6% and 5.1% in the remaining weeks of the month.
Bhavesh Unadkat, principal consultant in retail customer engagement at Capgemini, said: “A few factors contributed to the fall in online customer spending this month, but significantly last July saw a peak in conversion rate due to activity around Prime day, something that was not repeated this year.”
Andy Mulcahy, strategy and insight director at IMRG, added: “The British weather is often the cause of much misery or joy for British retail, and July was no different.”
The IMRG Capgemini Index, which was started in April 2000, tracks ‘online sales’, which we define as ‘transactions completed fully, including payment, via interactive channels’ from any location, including in-store.