Report Summary

Period covered: 27 August - 30 September 2023

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Online Retail sales

Online retail sales growth rose xx% YoY in September (value and non-seasonally adjusted), against an xx% decline a year ago. This was a slowdown on the previous month and the lowest growth rate since xxxx.

Average weekly sales were broadly unchanged on the previous month in September, totalling £xxxx.

Weak annual comparatives, joint-record temperatures, ongoing cost of living pressures and fragile confidence impacted September’s performance:

Annual comparatives: A year ago, consumer confidence plunged to a record low amid surging interest rates and borrowing costs and a disastrous mini-budget which momentarily sent sterling to an all-time low. A shift to the online channel following store closers after the Queen’s death provided an offsetting boost to performance.

Record temperatures: A heatwave in the first half of the month brought sunny and dry conditions and the most significant spell of warm weather since June.

During 4th to 10th September temperatures exceeded 30 degrees across the UK leading to the joint-warmest September (with 2006) on record according to the Met Office.

This saw demand for seasonal apparel lines falter, with online clothing and footwear (9.6%) sales reporting their weakest rise since April.

But the unseasonal conditions did support sales within the Food (8.8%) category as demand rose for warm-weather items such as ice cream and barbeque foods.

Cost of living pressures: While we have seen real earnings turn positive in recent months, we expect earnings to fall below inflation in the months ahead as wage pressures dissipate.

Confidence fragile: The headline consumer confidence measure rose four points to -21 in September however, the harsh economic backdrop has seen confidence fluctuate in recent months with the latest data showing another deterioration, wiping out recent improvements.

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Online penetration broadly unchanged