NEWS19 July 2021

Online retail sales fell in June

Covid-19 News Retail Trends UK

UK – Online retail sales dropped for the second month running in June following the easing of Covid-19 restrictions in the UK, according to the latest IMRG Capgemini Online Retail Index.

Online shopping abstract image

The index found there had been a 14.1% drop in June 2021 compared with June 2020, which it said was the steepest drop ever registered by the index.

Online retail sales in June were also 4.6% lower than in May 2021, and followed similar month-on-month declines in April and May.

The IMRG Capgemini Online Retail Index, which started in April 2000, tracks online sales, which are defined as “transactions completed fully, including payment, via interactive channels” from any location, including in-store.

Health and beauty was the worst-performing online category in the index, with a year-on-year fall of 42.8%.

However, the index found that clothing (up 18.6%), beers and wines (up 20.9%) and garden (up 19.9%) all grew in popularity online despite falls in other categories.

Average basket volume online rose to £134 in June 2021 compared with £85 in June 2020, which the index suggested showed an increasing level of consumer confidence with purchasing more expensive items or ordering larger quantities online.

Chris Long, director, retail consulting, at Capgemini, said: “The steep fall in June of -14.1% is a strong indication that consumer confidence is growing to get back out on the high-street as lockdown eases and the vaccine rollout continues.

“We can expect this shift in spend between online and the high-street to continue, with retailers grappling demand swings and stock challenges across channels to ensure availability for consumers as their shopping habits change.”