United Kingdom

Details

  • Industry: Retail and Consumer Goods
  • Type: Press release
  • Date: 12/08/2014

BRC-KPMG Online Retail Sales Monitor July 2014 - record three-month online contribution for 2014 

  • Online sales of Non-Food products in the UK grew 14.9% in July versus a year earlier. In July 2013, they had increased by 7.9% over the previous year.

 

  • In July, online sales represented 16.7% of total Non-Food sales of our Monitor, against 15.3% in July 2013. July’s penetration was almost in line with its 3-month average of 16.9%.

 

  • Furniture reported its best online growth rate since February, an achievement given the nice weather.

 

  • Online sales contributed 1.6 percentage points to the growth of Non-Food total sales in July. Over the last three months, the online contribution was almost as much as the stores contribution and the highest recorded this year.

 

Helen Dickinson, Director General, British Retail Consortium, said: "'July has seen good online growth and, for non-food products, one in every six pounds is now spent online. The figures are somewhat flattered this July as last year online activity was low due to successful sporting activities attracting people to other types of screens. Nevertheless, online sales of Furniture and toys looked particularly healthy.

 

"Established websites are capitalising on their client base by partnering with other retailers, therefore becoming a favourite destination for a larger range of products.

 

"Online retail sales contributed generously to the growth of non-food retail sales. On a three-month basis, it was the highest recorded this year and almost matched the stores' contribution."

 

David McCorquodale, Head of Retail, KPMG, said: "Despite the glorious sunshine, retailers managed to capture shoppers’ attention online through the use of targeted and innovative digital campaigns, linking products to holiday plans, festivals and sporting events taking place across the UK. This clever use of customer data and technology paid dividends for the sector, with non-food online sales soaring to record levels."

 

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 8924

media@brc.org.uk

 

KPMG

15 Canada Square

London

E14 5GL

020 311 1000

www.kpmg.co.uk

 

Zoe Sheppard, 0117 905 4337

mobile: 07770 737 994

zoe.sheppard@kpmg.co.uk

 

 

The August 2014 Monitor, covering the four weeks 3 August – 30 August, will be released at 00.01am Tuesday 9 September 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 approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 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. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

 

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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