Online and digital continue to grow strongly showing a healthy uplift of 9.5 per cent. Over £1 in every £5 spent on non-food was spent online, the third highest proportion on record.
Helen Dickinson OBE, Chief Executive | British Retail Consortium
“Online and digital continue to grow strongly showing a healthy uplift of 9.5 per cent. Over £1 in every £5 spent on non-food was spent online, the third highest proportion on record. This was coupled with an overall decline in non-food store sales, although the furniture, home accessories and health and beauty categories showed growth in stores for the month. Across the three-month period from January to March there was a rise of 0.9 per cent in non-food store sales.
“In today’s increasingly digital environment, retailers continue to invest in online and omni-channel strategies to evolve with changing consumer shopping habits. There is a need to think differently about the retail offer, whether digital or in store, as people crave more theatre and experience. Government also has a role to play in recognising the significance of the ongoing structural change and how the implications of this will be uneven across different parts of the country, different parts of the workforce and for different sizes of business.”
David McCorquodale, Head of Retail | KPMG
“While online growth slowed further in March - dropping below 10 per cent for non-food sales - penetration rates rose slightly remaining above 20 per cent for the third consecutive month as colder March weather meant consumers shied away from the shelves in favour of the sofa.“Homeware categories once again stood out as consumers took advantage of school holidays and long Easter weekend to spruce up their homes. Elsewhere, Mother’s Day boosted sales of accessories and beauty products as Mums were treated to something special by loved ones.”
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 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.
British Retail Consortium
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The British Retail Consortium (BRC) is the UK’s leading retail trade association. It represents the full range of retailers, large and small, multiples and independents, food and non-food, online and store based.
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
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