Positive response to online summer sales experience
Helen Dickinson, director general, British Retail Consortium, said: “Despite online growth of non-food items having increased at its lowest rate since July 2013, the proportion of online sales keeps increasing. This is due to the enhanced online shopping experience which retailers have worked hard to provide for their customers. Retailer’s sophisticated multichannel propositions are especially convenient for shoppers who do not want to brave busy stores during the summer sale season. This means that people can browse leisurely for goods online, through their mobiles, desktops or tablets, in the comfort of their own home or on the move. Online sales also include shoppers buying online and collecting in-store which often incorporates the best of both worlds as customers can collect at their convenience instead of waiting at home for the delivery and will often take the opportunity of a top up purchase.
“Scale is becoming a key differentiating factor for the online market. Large retailers with a more advanced online services proposition and able to utilise efficient distribution and logistics can now offer on their website brands from other retailers who don’t have sufficient scale online.”
David McCorquodale, head of retail, KPMG, said: “The blazing summer sun proved too much of a distraction for shoppers in June and online sales growth slowed to the lowest level seen in a year. However, the summer months are traditionally a weaker time for online sales and this slowdown will not give retailers too much cause for concern. The onus is on retailers to better connect with consumers online and deliver innovative, personalised campaigns which will capture the average shopper’s imagination and encourage them to spend online and in store. With a summer of sport, festivals and local events taking place across the country, there are numerous opportunities for retailers to link online campaigns with the great outdoors and regain the attention of shoppers.”
In June, non-food online sales recorded their lowest growth since July 2013. Meanwhile, the proportion of non-food sales online (17.2%) exceeded its three-month average (16.7%) for the first time since November 2013. This was also a strong 1.3 percentage points above last year. This highlights the success of online summer promotions, which offered consumers hassle-free access to the sales. Multi-channel fashion retailers commented that many customers opt to pick up their items in store after buying them through the online clearance.
Online sales contributed 1.4 percentage points to the growth of overall UK non-food sales, a strong performance in view of last month’s muted overall sales growth.
Footwear was awarded an impressive second place in the growth rankings table last month, while clothing was shifted down one place by the introduction of the toys and baby equipment category.
June saw a continuation of cross-retailer activity, whereby retailers with an established online presence complemented their existing online offer with branded products from retailers who otherwise would not have had the scope or capabilities to offer the same online service and delivery time. This enables smaller retailers to widen their online reach.