Online retail sales drop 10% in July as lockdown easing triggers “shift in spending patterns”


Online retail sales dropped 10 per cent in July as pubs and restaurants opened triggering “a shift in spending patterns amongst consumers”.

Online sales throughout July saw a “sharp decline” of 10 per cent compared to a month earlier, according to the latest figures from IMRG’s online sales index.

Sales also dropped 10 per cent year-on-year in the week commencing July 5 as lockdown measures were eased, but this decline was short lived and online sales returned to a 27 per cent growth the following week.

Compared to the same period last year, online retail sales remained relatively strong rising by 28.3 per cent overall in July.

According to IMRG’s strategy and insight director Andy Mulcahy this was largely due to many users cancelling holidays towards the end of the month as quarantine measures were extended.

“The difficulties some business sectors are having in coming out of lockdown may mean online retail growth remains very high over a longer period.”

READ MORE: UK online sales plummet as shoppers prepare for re-opening of physical stores

The easing of lockdown measures also had a significant impact on sales by category, seeing clothing sales grow for the first time since lockdown began.

Gardening sales also shot up 96.4 per cent year-on-year thanks to the hot weather, while electricals and health and beauty sales jumped 62.4 per cent and 38.3 per cent respectively.

Capgemini’s managing consultant Lucy Gibbs added: “The increased options for purchasing and opening up of social and leisure activities has triggered a shift in spending patterns amongst consumers.

“As we navigate the next few months it is crucial that retailers are able to continue to enhance the experience both online and in store to meet changing need and emerging challenges that are facing the retail landscape.”

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