Strongest Growth This Year, But Margins Suffer
- Online retail sales increased by 8.5% year-on-year in June
- Clothing saw the highest growth with a rise of +15.7%
- Menswear had its strongest performance of 2019 at +31.2%
- Womenswear reversed negative growth with an increase of +3.3%
- Health and beauty sales up by +20.4% and home and garden by +9.8%
- Electricals and gifts continued to decline at -23.0% and -23.4% respectively
- Discounting led to lower margins for online clothing sales
- Shopper confidence may not be high due to decreased average basket value
Online retail sales experienced a significant increase of 8.5% year-on-year in June, according to the IMRG Capgemini eRetail Sales Index. This follows a slump in May where online sales suffered their worst growth on record at +1.9%. Clothing recorded the highest growth this year with a rise of +15.7%, driven by strong performances in menswear (+31.2%) and womenswear (+3.3%). Health and beauty saw an increase of +20.4%, while home and garden rose by +9.8%. Electricals and gifts continued to decline at -23.0% and -23.4%. Andy Mulcahy, strategy and insight director at IMRG, noted that the trading environment for online retail in the first half of the year has been challenging, with growth at just +2.2% (March-May). June’s results represent a bounce-back, especially considering it built on strong growth of +16.1% in June 2018. However, heavy discounting led to lower margins for online clothing sales, as the average basket value decreased by -25%.
Factuality Level: 8
Factuality Justification: The article provides accurate information about online retail sales growth, specific categories’ performance, and expert commentary on the situation. It is based on data from a reliable source (IMRG Capgemini eRetail Sales Index) and presents relevant details without digressions or sensationalism.
Noise Level: 3
Noise Justification: The article provides relevant information about online retail sales growth and specific categories’ performance. It also includes expert commentary on the situation. However, it lacks in-depth analysis or exploration of underlying factors and long-term trends.
Financial Relevance: Yes
Financial Markets Impacted: Online retail companies
Financial Rating Justification: The article discusses changes in online retail sales, which can impact the financial performance of these companies and potentially affect their stock prices.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article
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