BRC-KPMG: online ‘steals the show’ with solid summer sales

Online sales of non-food products in the UK grew 11.2 % in July compared with the year earlier, according to The British Retail Consortium (BRC)-KPMG online retail sales monitor.

This figure is up from last month (9%) and in line with the 12-month average of 11.1%. Online sales continue to outperform total sales.

BRC chief executive Helen Dickinson said: “Online non-food sales echoed the performance of total sales this month, with growth rising back to the 12 month average.

“The brief drop-off in online sales activity in the few days following the EU referendum turned out to be a blip as consumers, who had turned their attentions to browsing for details about the EU, quickly returned to spending online. As with in-store sales, there was widespread promotional activity in July.

“That is usual for this time of year, although a number of retailers undertook longer and broader promotions as a result of the substantial accumulated stock resulting from a sluggish first half of 2016.

“We’ll have to watch and wait to see if the success of promotions spills over on to full price sales. Whilst there doesn’t appear to be much sign of the reported fall in consumer confidence feeding into sales, with the rapid and multi-faceted evolution of internet centred technology, customers are becoming increasingly savvy and expectant of low prices. Given the fierce competition in the market, retailers have little choice but to rise to the challenge.”

KPMG head of retail David McCorquodale commented: “E-tills were ringing this July with overall non-food online sales up 11.2% in the month.

“Women’s fashion and accessories performed positively compared to the slump in June as the July heatwave, coupled with seasonal sales, spurred summery purchases.
“Elsewhere, families took advantage of timely e-promotions boosting sales of outdoor toys, so that the kids could make the most of the July heatwave.

“Sales of household appliances and furniture also surged as consumers purchased outdoor tables, chairs and barbecues to maximise the alfresco dining experience.
“Despite this, penetration rates dipped slightly by 0.2% as more shoppers hit the high streets in the warmer weather.

While online remains a key shopping avenue, retailers need to continue to ensure consistency of experience across all channels, in order to maintain the attraction of both the virtual and physical aisles to their consumers.”

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