August 18, 2014, 10:23 AM

U.K. online sales increase 14% in July

Home, garden and electronics products post strong web sales growth, a new report says.

Web sales in the United Kingdom bounced back in July, according to the e-Retail Sales Index from technology consultancy Capgemini and U.K. e-retail association Interactive Media in Retail Group, or IMRG.

Sales increased more than 14% in July 2014 compared with July 2013 and grew 3% month over month. That month-over-month growth follows a weak June, when sales decreased 5% month over month. In June U.K. online sales grew 9% year over year. In June, consumers shied away from buying big-ticket items online, IMRG and Capgemini say.

Online sales of electronics were especially strong, growing 19% in July compared with July 2013. That also compares to a 7% year-over-year increase in June. Home and garden products also posted strong sales, growing 17% year-over-year in July, compared with 8% year-over-year growth in June.

British consumers spent an estimated 8.1 billion pounds (US $13.55 billion) online during July, up 14.1% compared with 7.1 billion pounds (US $11.88 billion) in July 2013.

“With the July Index performance back to solid double-digit growth, it appears the disappointing results in June were merely a blip,” says Tina Spooner, IMRG's chief information officer. “It is evident that consumers are now spending more money online, and the increase in high-ticket purchases, including electrical items, indicates that consumer confidence is certainly increasing. The U.K. online retail industry is, once again, performing close to our growth forecast and we are still on track to see in excess of 100 billion pounds spent online for the first time this year.”

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