UK Online Retail Sales Report summary
August 2023
Period covered: Period covered: 02 – 29 July 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 July (value and non-seasonally adjusted), its best performance since xxx xxx
Average weekly sales totalled £xx which, excluding recent Christmas periods, was the highest spent since xxxxx xxx
Performance was influenced by several key drivers:
Annual comparisons: despite record temperatures last July supporting performance, reaching 40°C at times, online sales fell xx% YoY due to comparisons with a post-pandemic bounce a year earlier.
Autumnal weather: a brief warm spell in early July was the only bright spot in a largely dull and wet month. Average rainfall was significantly ahead of July norms making it the sixth wettest July on record and the wettest July for 14 years.
Increased discounting: Amazon’s two-day Prime Day event (11-12 July) ramped up discounting and promotional activity across the sector with some retailers holding their own discounting events to support performance.
Sales on the first day of Amazon’s Prime Day event rose by 1.3% on a year ago according to data from Adobe Analytics.
Notably, increased pressure on household budgets saw a 20% rise in the number of consumers using buy now pay later (BNPL) payment methods to make their purchases with 13% of all orders placed on the first day of the event said to have been made through BNPL platforms (Adobe Analytics).
The combination of poor weather and increased promotional activity saw the penetration rate step up, with online sales accounting for 26.1% of overall sales in July, the highest rate since December.
Resultantly, footfall to retail destinations fell 0.3% between June and July following a 3.7% rise in June – the first July on record where footfall growth has been lower than in June.
Take out a FREE 30 day membership trial to read the full report.
Online penetration edges higher
Source: ONS, Retail Economics analysis
