Sales growth for online-only retailers during June 2017 was down significantly on the previous year, according to a report from IMRG.
UK online retail sales were up +9.5% year-on-year in June, according to the latest figures from the IMRG Capgemini e-Retail Sales Index. This was the second-lowest June growth rate since. 2017 growth, which was only marginally higher than the 9.5% increase in 2014, is the first time growth has dipped into single-digit territory since October 2015.
June’s results follow a slowdown in May, a dip which has been claimed to have been influenced by the snap election and rising inflation.
The warm weather in June encouraged people to go out to high streets, with June’s total footfall reported as being up 0.8% up on the same month last year. This may have contributed to a contrast in fortunes for online-only retailers and multichannel retailers who may have benefited from use of click and collect orders.
“Online retailers are facing something of a perfect storm at the moment, having to operate against the backdrop of a continuing wave of political uncertainty, rising inflation, a changing retail calendar (due to impact of major sales days such as Prime Day) and heatwaves.”Said Justin Opie, IMRG managing director.
“The low growth online during election week (+3.4%) strongly suggests that the election did exert some influence over shopping behaviour as did, arguably, the weather – albeit in a much more ‘omnichannel’ sense. Sales growth for online-only retailers was down almost 200% year-on-year, while for multichannel retailers growth held at the same rate as last year – quite possibly buoyed by the appeal of click and collect orders to provide a bit of certainty for their trips to the high street.”