Online retailers operating in the UK have witnessed a sharp increase in orders leaving the country post Brexit, according to new data out today.
Total delivery volumes were up 10.3% year-on-year in June, with orders leaving the UK making up 27% of these deliveries, the highest June figure in five years.
The IMRG MetaPack UK Delivery Index found that UK retailers have become more attractive to many cross-border shoppers after the value of sterling dropped sharply following Britain’s decision to leave the EU.
So far in 2016, the average order value recorded in the index each month has been increasing compared to the same months last year.
In June this trend reversed however, with the order value for EU and non-EU destinations falling -13% compared with May’s order value.
Andrew Starkey, head of e-logistics at IMRG said: “The data this month provides a reasonably clear indication that there were some early impacts on delivery orders following the EU referendum, but it’s worth keeping in mind that June’s data only included one week of post-Brexit tracking – it’s just too early to say if we are seeing the start of a genuine shift in trends.
“We knew that sterling would take a sudden sharp hit in the event of a vote to leave, but over time it would be expected to recover again – the more important factor for retailers will be how shopper confidence fares in the long-term.”
Kees de Vos, chief product officer at MetaPack said: “It is to be expected that in response to the immediate drop in the value of the pound, cross-border transactions would be impacted, but we should not read anything conclusive into this. As the post-Brexit trade landscape starts to take shape and we begin the process of negotiating new trade arrangements that protect consumer’s interests across Europe, then a clearer picture will emerge.”