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Heavy discounting has spurred the highest growth in online sales for 20 months, according to the latest IMRG Capgemini eRetail Sales Index.
The monthly report found e-commerce grew 19% in July compared with the same month last year, representing a 20-year high for the index and a continuation of a stronger-than-expected 2016 for online retail.
However, experts have warned growth has been driven by “high discounting” across the board, with the average basket value of goods purchased online falling from £80.52 in June to £78.39 in July.
The report said the discounting may have been influenced in part by the need to compete with Amazon Prime Day (12 July), with Amazon announcing that customer orders surpassed Prime Day 2015 by more than 60% worldwide.
Growth was also fuelled by a resurgence in sales growth for multichannel retailers, which recorded a growth rate in online sales of 19% – a 13-month high. This was supported by continued strong growth for online-only retailers where sales grew 18% year-on-year.
Bhavesh Unadkat, management consultant in retail customer engagement design at Capgemini, said: “It’s great to see that the Index registered such a strong July performance – the biggest growth since November 2014.
“Impressive sales from the multichannel retailers saw them drive growth and undoubtedly helped the month’s figures. Indeed, many of these retailers had reactive plans in place to match the discounts offered by Amazon Prime Day, which goes some way to explaining the drop in basket value.”
