Spike in June high street sales fails to translate to online

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Sales growth for online-only retailers during June 2017 was down significantly on the previous year, according to a report from IMRG.

UK online retail sales were up +9.5% year-on-year in June, according to the latest figures from the IMRG Capgemini e-Retail Sales Index. This was the second-lowest June growth rate since. 2017 growth, which was only marginally higher than the 9.5% increase in 2014, is the first time growth has dipped into single-digit territory since October 2015.

June’s results follow a slowdown in May, a dip which has been claimed to have been influenced by the snap election and rising inflation.

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The warm weather in June encouraged people to go out to high streets, with June’s total footfall reported as being up 0.8% up on the same month last year. This may have contributed to a contrast in fortunes for online-only retailers and multichannel retailers who may have benefited from use of click and collect orders.

“Online retailers are facing something of a perfect storm at the moment, having to operate against the backdrop of a continuing wave of political uncertainty, rising inflation, a changing retail calendar (due to impact of major sales days such as Prime Day) and heatwaves,” reveals IMRG managing director, Justin Opie.

“The low growth online during election week (+3.4%) strongly suggests that the election did exert some influence over shopping behaviour as did, arguably, the weather – albeit in a much more ‘omnichannel’ sense. Sales growth for online-only retailers was down almost 200% year-on-year, while for multichannel retailers growth held at the same rate as last year – quite possibly buoyed by the appeal of click and collect orders to provide a bit of certainty for their trips to the high street.”

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