- Online sales of Non-Food products in the UK grew 10.6% in June versus a year earlier. In June 2013, they had increased by 12.5% over the previous year. This is the lowest online growth recorded since July 2013.
- In June, online sales represented 17.2% of total Non-Food sales of our Monitor, against 15.9% in June 2013. June’s penetration was greater than its 3-month average, at 16.7%.
- Excluding Health & Beauty, Footwear was the only category to report growth above the total 3-month and 12-month averages. Indeed, there was a strong contribution of online to UK Footwear sales last month. Toys & Baby Equipment – reported for the first time in this release – performed ahead of Clothing and the home categories.
- Online sales contributed 1.4 percentage points to the growth of Non-Food total sales. When compared to the UK total sales growth of 0.6% last month, this can be viewed as a strong online performance.
Helen Dickinson, Director General, British Retail Consortium, said: "Despite online growth of non-food items having increased at its lowest rate since July 2013, the proportion of online sales keeps increasing. This is due to the enhanced online shopping experience which retailers have worked hard to provide for their customers. Retailer’s sophisticated multichannel propositions are especially convenient for shoppers who do not want to brave busy stores during the summer sale season. This means that people can browse leisurely for goods online, through their mobiles, desktops or tablets, in the comfort of their own home or on the move. Online sales also include shoppers buying online and collecting in-store which often incorporates the best of both worlds as customers can collect at their convenience instead of waiting at home for the delivery and will often take the opportunity of a top up purchase.
"Scale is becoming a key differentiating factor for the online market. Large retailers with a more advanced online services proposition and able to utilise efficient distribution and logistics can now offer on their website brands from other retailers who don’t have sufficient scale online."
David McCorquodale, Head of Retail, KPMG, said: "The blazing summer sun proved too much of a distraction for shoppers in June and online sales growth slowed to the lowest level seen in a year. However, the summer months are traditionally a weaker time for online sales and this slowdown will not give retailers too much cause for concern. The onus is on retailers to better connect with consumers online and deliver innovative, personalised campaigns which will capture the average shopper’s imagination and encourage them to spend online and in store. With a summer of sport, festivals and local events taking place across the country, there are numerous opportunities for retailers to link online campaigns with the great outdoors and regain the attention of shoppers."
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 growthis 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-Foodare 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.
Penetrationis 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.
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The July 2014 Monitor, covering the four weeks 6 July – 2 August, will be released at 00.01am Tuesday 12 August 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
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.
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