Online retailers bask in strong growth in June but firms warned of ‘slowdown’

Online retail sales in the UK grew strongly once again in June as hot weather spurred near 17% year-on-year growth, but experts have warned of a potential ‘slowdown’ in coming weeks.

According to the latest IMRG Capgemini e-Retail Sales Index, both multichannel and online-only retailers performed well, reporting 15% and 19% increases, respectively.

Bhavesh Unadkat, principal consultant in retail customer engagement at Capgemini, said that June has seen continued buoyant sales online, but warns this may not continue.

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“We might question what the longer term effect is as Barclaycard report that one in three Brits have spent more than normal so far this summer.

“This could result in a slowdown as customers align the potential overspend so far this summer in the later months of the year, supported by four in 10 saying they will hold off purchasing big ticket items.”

It is worth noting that non-essential items saw the largest growth, which could include jewellery.

In particular the report reveals a 23.9% growth in the sale of accessories (which includes fashion jewellery), and a 10% rise in the gifting market.

Andy Mulcahy, strategy and insight director, IMRG, comments: “Sales growth for UK online retail has been consistently strong so far in 2018 – in spite of the fact that there are signs of a slowdown underway.”

Summer tends to be a quiet season for jewellers as they start heading out of bridal season and moving towards the Christmas gifting surge.

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