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UK shoppers buy more online in July: BRC

UK shoppers bought more of their shopping online in July, according to British Retail Consortium (BRC) figures, helping ecommerce to make its strongest contribution of the year to overall retail growth.

But the growth came against a background of subdued overall growth, with like-for-like sales down by 0.3% last month.

The monthly BRC-KPMG Online Retail Sales Monitor for July 2014 showed online sales of non-food products up by 14.9% during the month compared to the same time last year, when they rose by 7.9%.

Online sales represented 16.7% of non-food sales last month, up from 15.3% in July 2013. At the same time, online sales contributed 1.6 percentage points to the growth of non-food sales last month.

Helen Dickinson, director general of the British Retail Consortium [IRDX VBRC], said: “Online retail sales contributed generously to the growth of non-food retail sales. On a three-month basis it was the highest recorded this year and almost matched stores’ contribution.”

Despite this, total retail sales in July grew by 1.3% compared to last year, with like-for-like sales down by 0.3%, according to the BRC-KPMG Retail Sales Monitor, also out today. Last July total sales grew by 3.9%, and like-for-like sales by 2.2%.

She added: “July has seen good online growth and, for non-food products, one in every six pounds is now spent online.

“The figures are somewhat flattered this July as last year online activity was low due to successful sporting activities attracting people to other types of screens. Nevertheless, online sales of furniture and toys looked particularly healthy.”

July’s online sales growth, of 14.9%, is in line with the 12-month average of 14.7%. Since a year ago the 12-month average stood at 9.9%, the BRC says a “clear acceleration” in sales can be seen, which it puts down to the increased use of mobile, tablets, click and collect and the increasing sophistication of websites. In particular, it points to established websites who already enjoy high levels of traffic and who are partnering with complementary retailers to become favourite destinations within their category.

David McCorquodale, head of retail at KPMG [IRDX VKPM], said: “Despite the glorious sunshine, retailers managed to capture shoppers’ attention online through the use of targeted and innovative digital campaigns, linking products to holiday plans, festivals and sporting events taking place across the UK.

“This clever use of customer data and technology paid dividends for the sector, with non-food online sales soaring to record levels.”

Mentioned in this piece…

British Retail Consortium

British Retail Consortium

IRDX: VBRC

The British Retail Consortium (BRC) is the lead trade association representing the whole range of retailers, from the large multiples and department stores through to independents, selling a wide selection of products through centre of town, out of town, rural and virtual stores. (more…)

KPMG

KPMG

IRDX: VKPM

KPMG in the UK has over 10,000 partners and staff working in 22 offices and is part of a strong global network of member firms. Our vision is simple – to turn knowledge into value for the benefit of our clients, people and our capital markets. Our innovative spirit inspires what we do and how we do it, providing valuable benefits for clients, employees and stakeholders. Constantly striving to be better lies at the heart of what makes us different. (more…)