UK Online Retail Sales Report summary
December 2023
Period covered: Period covered: 29 October – 25 November 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 November (value and non-seasonally adjusted), against an 6.5% decline a year ago – the best performance since xxx.
Notably, average weekly online sales totalled £xxxx in November, the most spent online on record (barring November 2020 when all but non-essential shops were closed).
Extended Black Friday promotions, weak annual comparatives, ongoing weather disruptions and an improving economic backdrop supported performance in the penultimate month of 2023:
Annual comparatives: A year ago, the typical Black Friday boost was muted compared to recent years given the harsh consumer backdrop; headline inflation was in double-digits, with food inflation reaching a 45-year high.
Elsewhere, interest rates were on the rise and the Bank of England’s declaration that the UK would be in a recession in 2023 weighed on confidence causing online sales growth to decline across most sectors.
Extended Black Friday promotions: This year, retailers extended Black Friday deals throughout November to entice consumers to spend amid the ongoing pressure on their household budgets.
But early Black Friday momentum wasn’t sustained as consumers remained cautious.
Weather disruptions: The weather once again played havoc with seasonal lines with a month of two halves.
The first half brought Storm Ciaran (1&2 November) and Storm Debi (13 November), while the second half of the month brought more autumnal, milder conditions and above-average sunshine hours.
Clothing and Footwear (9.6%) sales suffered, recording its weakest performance online since February 2023, with demand only picking up when temperatures were more in line with seasonal norms.
However, overall, elevated levels of discounting and inclement weather resulted in the online penetration rate rising in November, with online sales accounting for 30.7% of total retail sales, above the 29.9% rate a year ago and the highest penetration for two years.
Take out a FREE 30 day membership trial to read the full report.
Online penetration steps up
Source: ONS, Retail Economics analysis
