E-retail sales reached a new all-time high in May, as the sector's growth continued to accelerate to...


Headline:	Internet shopping growth accelerates further to new all-time high
Description:	E-retail sales reached a new all-time high in May, as the sector's growth continued to accelerate to its fastest rate of increase in eight months. Online shopping growth outstripped that of the High Street by a factor of 40 in May, despite widespread aggressive discounting by bricks and mortar retailers. UK shoppers spent over £1.5 billion online during the month, 35.6% (£408 million) more than a year earlier, and 13% (£180 million) more than they did in April. The IMRG Index climbed to a new high of 1785, with all retail sectors seeing significant increases. In stark contrast, total retail sales growth was at its slowest rate since 1947, according to the latest government statistics, with a year-on-year increase of just 0.9%. Since February, when the second lowest ever year-on-year e-retail growth rate of 13.4% was recorded, the rate has climbed strongly each month - to 19.2% in March, 29.3% in April, and now 35.6% in May. "In a tough retail environment, large numbers of consumers are opting for the convenience and value that they are now confident that they will find online," commented Jo Tucker, IMRG's MD, who directs the Index programme. "And the internet is a great trading medium for retailers too: it gives them real-time feedback on consumers' buying moods, enabling them to continually optimise with great precision their offers, ranges, prices and stock levels, in order to maximise profitability." Index participant, Firebox.com's head of public retaliations, Charlie Morgan, said: "Whilst the high street continues to struggle, online sales have flourished, with no signs of abating. Firebox.com has seen an increase in sales during the first half of 2005 - 30% in May compared to the same month in 2004." IMRG's CEO, James Roper commented: "Many factors are contributing to the growth of online shopping, including as the rapid consumer take-up of broadband, completely secure payment mechanisms and improving delivery solutions. However, no component is more important than the online shopping services themselves, and these are getting much better: the customer journey is becoming easier, product ranges are wider, merchants are using clearer images and richer product information, linked selling features add value by drawing attention to relevant accessories, options and associated products. During the past year, new investment by online merchants has re-energized the e-retail sector, and is delivering innovative new shopping services that add real value. While there are strong online merchants in many sectors, there are still large gaps in the supply market - such as high-end fashion and real estate - indicating that broad scope exists for further industry growth." ABOUT THE IMRG INDEX More than eighty e-retailers regularly contribute data to the IMRG Index, including Ancestral Collections, Ann Summers, Arcadia Group, Argos, Avon, Berry Bros. & Rudd, Boden.co.uk, Boots Direct, Carphone Warehouse, Comet.co.uk, Co-operative Group (CWS), Co-operative Travel, Co-operative Electrical, Crocus.co.uk, dabs.com, Daxon, Debenhams, e-flowersUK.co.uk, Empire, Empire Direct, Figleaves.com, Firebox.com, Furniture123, Greenfingers.com, Interflora, I Want One of Those, J D Williams, John Lewis Department Stores, La Redoute, Lands' End, lastminute.com, Laura Ashley, Littlewoods Retail, Lunn-Poly, Made in Sheffield, Marks & Spencer, MFI, Mothercare, Next, PetPlanet.co.uk, Otto UK (Freemans, Grattan, Kaleidoscope), QED, QVC, R C Roland, Redcats UK, Shoes Direct, Shoe-Shop.com, Shops Direct Group, Tesco.com Wine, The Store, The Sunday Times Wine Club, TUI UK, United Co-op, Virgin Wines, Vertbaudet, Waitrose and Widget. The IMRG Index is currently being expanded to report more data and break out more sectors; the next sectors targeted for breakout are Financial Services, Health & Beauty, Travel, Digital Downloads. All interactive retail channels are included in the survey: internet, interactive TV, m-commerce, and others that may emerge.
Date:	29.06.2005
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