UK e-commerce growth has hit its highest point since 2014

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Online retail sales in the UK experienced 18.7% YoY growth during July 2016, the highest since November 2014, notes Ecommerce News citing IMRG Capgemini’s Sales Index.

However, e-commerce sales in July were down 0.4% when compared to the prior month, while the average order value decreased by 2.6% against June 2016 figures. The decrease in the average order value could be due in part to heavy discounting, as retailers tried to compete with Amazon’s Prime Day.

The apparel sector was a key driver behind the increase in e-commerce growth. Online sales for clothing retailers increased 22% YoY during July. Additionally, online sales increased across all clothing sub-sectors, including a 33% YoY gain in “accessories.” Currently, UK online sales growth for the year has beat expectations. Online sales growth was forecasted at 11% YoY for 2016, while it sits at 15% YoY presently.

Online shoppers in the UK prefer to buy online directly from their favorite retailers, as opposed to going through search engines or display ads. In fact, 41% of UK online shoppers go directly to a retailer’s website when making purchases, suggesting a high level of brand loyalty. This brand loyalty to e-commerce retailers may also spur frequent purchases, which could be helping to drive e-commerce growth among UK retailers. 

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