August online retail sales online increase

August's Capgemini and IMRG eRetail Sales index results shows the highest month for online retail growth so far in 2017.

The findings show UK online retail sales were up +16.4% year-on-year (YoY) in August.

The Home sector had a particularly strong August, with 20.5% year-on-year growth and an average basket value (ABV) of £130.

There was a 2.6% drop in high street footfall  in August, which may have been influenced by poor August weather.

The British Retail Consortium, working with consultancy KPMG, said like-for-like sales rose 1.3% in August, against a 0.9% fall for the same month in 2016.

The Garden Centre Association said final figures were likely to show a small increase in sales for August compared to August 2016, with year-on-year figures continuing to track slightly above 2016.

The Home sector had a particularly strong August, with 20.5% year-on-year growth and an average basket value (ABV) of £130. Clothing also showed good growth at 17.9%, the best performance for this sector in 2017, and with an ABV up £9 on August 2016. These sectors both contributed to the highest overall ABV for the month of August in five years. All this comes despite August inflation of 2.9%.

However, September's Markit figures show a deterioration in UK household finances.

Outside of the sector-specific growth, multichannel retailers saw 17% growth, following three months of single-digit only growth (the first time that had happened since February 2015).

Online retail trade body IMRG managing director Justin Opie said: "Online sales growth for multichannel retailers has been on a general downward trend in recent months and, while it’s too early to say whether this spike indicates the start of a reversal to this trend, there are other data-points that may help us understand what is happening. During Q2 of this year*, click and collect penetration exceeded 30% of online orders for multichannel retailers. The IMRG Blujay Home Delivery review 2017 further indicated that the ability to combine click and collect with other shopping activity was the second most popular reason for choosing it. It’s possible that this points toward a shift in how people are shopping in a more focused way across online and offline, perhaps spending less time actually browsing high street shops – a drop in high street footfall was reported in August, while like-for-like high street retail was up – but looking to take advantage of retailers’ store portfolios where convenient for them."

 


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