After recording the steepest drops
in the history of the IMRG Capgemini Online Retail Index for two months in a
row, the fall in UK online retail sales appears to be slowing, with shoppers
continuing to prioritise fashion.
Online
retail sales fell by 9.6% year-on-year last month, according to the latest IMRG
Capgemini Online Retail Index, which tracks the online sales performance of
over 200 retailers. That compares to a 14.1% drop in June.
The easing in overall sales is particularly apparent
when considering the week-on-week breakdown, with the first week of July down
14% versus just -5.5% in the final week. Other encouraging signs could be seen
in the month-on-month figure, where a drop of 4.4% was lower than would be
expected between June and July according to pre-pandemic patterns, and in the
Average Basket Volume (ABV) which reached its highest total spend for 2021 at
GBP134 – up 60% against July last year.
Apparel and footwear retailers recorded year-on-year
growth but were up against low and negative growth last year, respectively.
Andy Mulcahy, strategy and insight director, IMRG,
told Just Style: “According to the latest results from the index, the
year-on-year metrics for clothing are now performing as might have been expected
pre-pandemic; growth was up 13.4%, which sounds good in the current context and
when compared with most other categories, but that is against low growth of
only 3.8% in July 2020. It is a similar story when you look at some of the
sub-categories like footwear, which showed a comparatively strong sales
increase of 21.4% versus other categories, but that is being measured against
negative growth of 9.5% in July 2020.”
Mulchay adds in July 2021, overall month-on-month
(MoM) growth was ahead of where it usually is at this point of the year; with
the amount spent online declining 4.4% against June, whereas -8% was typical in
2020 and 2019.
“For the previous three months, the MoM rate has
tracked below where it would normally be as shopper spend has been
redistributed across other areas following the phased easing of restrictions.
“Perhaps the ‘pingdemic’ has played a role here, as so
many people were forced into isolation, but it’s also tempting to suggest that
we might be starting to see what the much-feted ‘new normal’ will actually look
like from a retail perspective. If that MoM measure is starting to plot the
established trading patterns that naturally go up and down at various times of
year, the question of how much volume will stick online following the pandemic
will have been answered.”
While online retail sales continued to fall to
record-breaking lows in June, consumers continued to update their
wardrobes, with clothing sales rising 18.6% .