Online retail figures remain positive despite wider industry decline

Online retail figures have showed resilience despite the wider industry’s decline. With the proportion of retail sales online rising to 26.4%.

The wider sector saw a drop in sales, which was compounded by inflation and also the addition of the extra bank holiday after the passing of Queen Elizabeth II.

“Consumers are acting cautiously, as they are more pessimistic about the economic outlook now than during the COVID-19 lockdowns in March 2020,” McKinsey & Company’s Kevin Bright said.

Bright believes that consumers are more concerned about the current economic outlook now than during the pandemic lockdowns.

Buy now, pay later (BNPL) is on the rise, with nearly one in five (19%) of consumers intending to use more services in the coming months. A small increase to the 15% who were willing to use one in April.

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“However, with indications that interest rates are likely to continue to rise, for many consumers the use of ‘buy now, pay later’ schemes may only provide a temporary reprieve,” Bright pointed out.

According to the Office for National Statistics (ONS), the proportion of retail sales online has remained broadly consistent at around 26% since May 2022.

Ebury head of sales Phil Monkhouse added: “Ecommerce volumes have continued to fall back following its surge over the pandemic. However, it has strong fundamentals to thrive once more in a cost-of-living crisis in giving consumers more immediate access to a range of items suiting different budgets.

“Online retailers need to be ready to react and service this demand particularly as we approach the busy Black Friday and Christmas period.

“Businesses with stock in place, solutions in place to avoid currency risk and ready-finance to maintain supplies are likely to be the winners in what has been a turbulent year to-date for retail.”



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