Online Slows Down In Legacy Of Black Friday

Online Slows Down In Legacy Of Black Friday

Online sales of Non-Food products in the UK grew 8.3% in February versus a year earlier, when it had risen by 14.3% over the previous year. This month’s growth is close to the 3-month average of 8.8%

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  • Online sales of Non-Food products in the UK grew 8.3% in February versus a year earlier, when it had risen by 14.3% over the previous year. This month’s growth is close to the 3-month average of 8.8%. In February 2015, online sales represented 17.5% of total Non-Food sales, against 16.6% in February 2014.
  • Toys & Baby Equipment was the second fastest growing category online for the second consecutive month, followed by Household Appliances. Health & Beauty also experienced its best performance since February 2013.
  • Online sales contributed 1.0 percentage points to the growth of Non-Food total sales in February. The 3-month average contribution of online to Non-Food growth exceeded that of stores for the sixth consecutive month. Online accounted for almost two-thirds of Non-Food sales growth on a 3-month basis.

Helen Dickinson, Director General, British Retail Consortium, said: “On a three month basis the largest proportion of non-food sales growth came from online sales rather than bricks and mortar for the sixth consecutive month. February saw a lull after the Christmas rush and January sales but managed to maintain a healthy rate of growth on top of February 2014's strong performance.

“Valentine's day seems to have particularly boosted the Health and Beauty category with online sales of those products growing at their greatest rate since February 2013.

“As the figures show online sales are still a crucial driver of the retail industry’s continued success. Retailers will continue to look at these figures closely to see what combination of online and in store offering works best for their customers.”

David McCorquodale, Head of Retail, KPMG, said: “Online sales were the primary driver of growth for the Non-Food retail sector over the last three months, with shoppers spending more online than in store on non-food items. Smartphones and tablets have helped to cement this shift, and it is vital retailers recognise this and invest in systems which make it easier for consumers to shop using these devices.

“The high street still has a leading role to play in the success of retailers’ operations, but most will acknowledge that it is no longer the sole star of the show.”

-ENDS-

 

Notes to Editors:

The Online BRC-KPMG Retail Sales Monitor measures changes in the actual value (including VAT) of online retail sales, excluding automotive fuel. The Monitor measures the value of spending and hence does not adjust for price or VAT changes. If prices are rising, sales volumes will increase by less than sales values. In times of price deflation, sales volumes will increase by more than sales values.

Retailers report the value of their online sales for the current period and the equivalent period a year ago.

Total Non-Food sales growth is the percentage change in the value of all retail sales with the exception of food sales compared to the same period a year earlier. The total Non-Food sales measure is used to assess market level trends in Non-Food retail sales. Non-Food retail spending represents approximately 55% of total retail sales.

Online (including mail order and phone) sales of Non-Food are transactions which take place over the internet, or via mail order or phone. Online sales growth is the percentage change in the value of online sales compared to those in the same period a year earlier. It is a guide to the growth of sales made by all non-store channels.

Penetration is the proportion of sales attributed to the online channel (including mail order and phone). Penetrations are calculated category by category as online sales submitted by participating retailers relative to total sales those retailers submit to the BRC-KPMG Retail Sales Monitor. Participants who do not sell online (or through non-store channels) are included but participants who do sell online but do not submit their online sales are excluded.

The responses provided by retailers within each sales category are weighted* to reflect the contribution of each category to total retail sales, thus making it representative of UK retail sales as a whole. The rates used are derived from the Office of National Statistics Family Spending Survey and revised every year. Because the figures compare sales this month with the comparable period last year, a seasonal adjustment is not made.

However, changes in the timing of Bank Holidays and Easter can create distortions, which should be considered in the interpretation of the data.

In its role as sponsor of the BRC-KPMG Retail Sales Monitor, KPMG is responsible for the aggregation of the retail sales data provided by the retailers on a weekly basis. This data consists of the relevant current week’s sales data and comparative sales figures for the same period in the prior year. The aggregation has been performed by KPMG on data for periods following 2 April 2000 and equivalent prior periods. The accuracy of the data is entirely the responsibility of the retailers providing it. The sponsorship role has been performed by  KPMG since 10 April 2000 and the same for the aggregation of comparative sales figures for the period from 2 April 2000 it is not responsible for the aggregation of any data included in this Monitor relating to any period prior to 2 April 2000.

* The aggregation and weighting of data for the ‘online’ monitor has been performed by the BRC and KPMG for periods starting 25 November 2012 and equivalent prior year periods. Prior to that date, the online figures in this monitor refer to the unweighted Non-Food non store indicator, as published in the BRC-KPMG Retail Sales Monitor until July 2013.

The commentary from the BRC is intended to be of general interest to readers but is not advice or a recommendation and should not be relied upon without first taking professional advice. Anyone choosing to rely on it does so at his or her own risk. To the fullest extent permitted by law, KPMG will accept no responsibility or liability in connection with its sponsorship of the Monitor and its aggregation work to any party other than the BRC.

© Copyright  British Retail Consortium and KPMG (2014). The contents of this report and those of all ancillary documents and preparatory materials are the sole property of BRC and KPMG and are not to be copied, modified, published, distributed or commercially exploited other than with the express permission of BRC or for the purposes of journalistic comment and review. All rights reserved.

The March 2015 Monitor, covering the five weeks 1 March – 4 April, will be released at 00.01am Tuesday 14 April 2015. The data is collected for the BRC by KPMG.

 

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British Retail Consortium

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KPMG

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Zoe Sheppard

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KPMG Press Office: +44 (0) 207 694 8773

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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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