Electrical sector to boom as Brits gripped by football fever
The latest figures from the IMRG Capgemini e-Retail Sales Index has revealed the impact sunshine and football fever had on online retail sales in May, recording a growth of 17% year-on-year (YoY); an impressive 20% excluding travel. This equates to £8.2bn spent online, as British shoppers splashed out on new clothing and electrical items to enjoy the World Cup.
The electrical sector surged 19% in May, but based on previous figures during major summer football tournaments, IMRG and Capgemini predict the World Cup could result in a huge 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
The clothing sector also reported a strong performance in May, thanks to the spell of dry and warm weather during the latter half of the month, with sales up 19% YoY. Accessories performed particularly well, with a 30% YoY increase. Promises of a sweltering summer helped give the Garden sector an additional boost, reaching 20% YoY as shoppers prepare themselves for BBQs and garden parties.
Tina Spooner, chief information officer, IMRG, 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.
“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.”
Chris Webster, VP, head of retail consulting and technology at Capgemini, 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 have 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 ell depend on how far England progress through the tournament as patriotic fans invest in bigger and better TVs to cheer on their team.”
