United Kingdom

Details

  • Industry: Retail and Consumer Goods
  • Type: Press release
  • Date: 11/02/2014

BRC-KPMG Online Retail Sales Monitor January 2014 - strongest online January since 2009 

  • Online sales of non-food products in the UK grew 19.2% in January versus a year earlier. In January 2013, they had increased by 13.5% over the previous year.

 

  • In January, online sales represented 17.4% of total non-food sales of our Monitor, against 16.3% in January 2013.

 

  • January online growth was the strongest since January 2009.

 

  • Online sales contributed 1.2 percentage points to the growth of Non-Food total sales. In the last three months, the contribution averaged 1.8 percentage points – almost one third of the total non-food growth.

 

Helen Dickinson, Director General, British Retail Consortium, said: "Another strong set of sales figures, up 19.2 per cent for non-food items in January, showed the continuing growth of online and its increasing importance as part of the retail mix in the UK.

 

"Embracing omnichannel sales has been a big driver of business for UK retailers. We've seen an ever-more discerning customer taking good advantage of click and collect and other innovative services. The combination of an online presence with a bricks and mortar offering is becoming increasingly compelling.

 

"There’s no doubt that online is driving structural change within the sector and retailers will continue to invest heavily to provide the seamless experience between channels that today’s shoppers demand. Our figures showed that 17.4 per cent of all non-food spending is online and we’re expecting this number to continue to rise as operations become more efficient, collections more convenient, deliveries faster and technology more integrated".

 

David McCorquodale, Head of Retail, KPMG, said: "With growth at 19 per cent and penetration from online sales running at 17 per cent, this channel is much more than the new frontier for retailers and really is the growth engine for the sector. Many retailers are investing heavily in analytics and supply chain fulfilment to drive personalisation of offer to the consumer and differentiate themselves from competitors through delivery performance. As online growth drives about a third of non-food sales expansion, retailers are doing all they can to fully embrace the growth prospects offered."

 

Notes

 

The Online BRC-KPMG Retail Sales Monitor measures changes in the actual value (including VAT) of online retail sales, excluding automotive fuel. The Monitor measures the value of spending and hence does not adjust for price or VAT changes. If prices are rising, sales volumes will increase by less than sales values. In times of price deflation, sales volumes will increase by more than sales values.

 

Retailers report the value of their online sales for the current period and the equivalent period a year ago.

 

Total non-food sales growth is the percentage change in the value of all retail sales with the exception of food sales compared to the same period a year earlier. The total non-food sales measure is used to assess market level trends in non-food retail sales. Non-food retail spending represents approximately 55% of total retail sales.

 

Online (including mail order and phone) sales of non-food are transactions which take place over the internet, or via mail order or phone. Online sales growth is the percentage change in the value of online sales compared to those in the same period a year earlier. It is a guide to the growth of sales made by all non-store channels.

 

Penetration is the proportion of sales attributed to the online channel (including mail order and phone). Penetrations are calculated category by category as online sales submitted by participating retailers relative to total sales those retailers submit to the BRC-KPMG Retail Sales Monitor. Participants who do not sell online (or through non-store channels) are included but participants who do sell online but do not submit their online sales are excluded.

 

The responses provided by retailers within each sales category are weighted* to reflect the contribution of each category to total retail sales, thus making it representative of UK retail sales as a whole. The rates used are derived from the Office of National Statistics Family Spending Survey and revised every year. Because the figures compare sales this month with the comparable period last year, a seasonal adjustment is not made. However, changes in the timing of Bank Holidays and Easter can create distortions, which should be considered in the interpretation of the data.

 

In its role as sponsor of the BRC-KPMG Retail Sales Monitor, KPMG is responsible for the aggregation of the retail sales data provided by the retailers on a weekly basis. This data consists of the relevant current week’s sales data and comparative sales figures for the same period in the prior year. The aggregation has been performed by KPMG on data for periods following 2 April 2000 and equivalent prior periods. The accuracy of the data is entirely the responsibility of the retailers providing it. The sponsorship role has been performed by KPMG since 10 April 2000 and the same for the aggregation of comparative sales figures for the period from 2 April 2000 it is not responsible for the aggregation of any data included in this Monitor relating to any period prior to 2 April 2000.

 

* The aggregation and weighting of data for the ‘online’ monitor has been performed by the BRC and KPMG for periods starting 25 November 2012 and equivalent prior year periods. Prior to that date, the online figures in this monitor refer to the unweighted non-food non store indicator, as published in the BRC-KPMG Retail Sales Monitor until July 2013.

 

The commentary from the BRC is intended to be of general interest to readers but is not advice or a recommendation and should not be relied upon without first taking professional advice. Anyone choosing to rely on it does so at his or her own risk. To the fullest extent permitted by law, KPMG will accept no responsibility or liability in connection with its sponsorship of the Monitor and its aggregation work to any party other than the BRC.

 

© Copyright British Retail Consortium and KPMG

 

Media Enquiries

 

British Retail Consortium

21 Dartmouth Street

London SW1H 9BP

020 7854 8900

www.brc.org.uk

 

Media: 0207 854 8900

Will Roberts: 07739 009 575

will.roberts@brc.org.uk

 

KPMG

15 Canada Square

London E14 5GL

020 7311 1000

www.kpmg.co.uk

 

Zoe Sheppard, 0117 905 4337

mobile: 07770 737 994

zoe.sheppard@kpmg.co.uk

 

The February 2014 Monitor, covering the four weeks 2 February – 1 March, will be released at 00.01am Tuesday 11 March 2014.


The data is collected for the BRC by KPMG.


The British Retail Consortium (BRC) is the UK's leading retail trade association. It represents the full range of retailers, large and small, multiples and independents, food and non-food, online and store based.


Sponsored and Administered by

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 10,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in more than 156 countries and have more than 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.

 

Detailed weekly data by category is available to retailers who contribute to the monitor:


If you would like to participate in the Retail Sales Monitor, please contact:

Anne Alexandre
0207 854 8960
anne.alexandre@brc.org.uk

 

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