- Online sales of Non-Food products in the UK grew 17.0% in May versus a year earlier. In May 2013, they had increased by 9.9% over the previous year. This is the highest online growth recorded since our records started in December 2012, excluding Christmas and New Year.
- In May, online sales represented 18.7% of total Non-Food sales of our Monitor, against 17.0% in May 2013. May’s penetration is the second-highest recorded by our monitor, after last November.
- The Other Non-Food category contributed over half of the growth. Clothing reported its highest growth since Christmas, and Footwear since December 2012.
- Online sales contributed 2.1 percentage points to the growth of Non-Food total sales. Over the last three months, Online represented one third of the total Non-Food growth.
Helen Dickinson, Director General, British Retail Consortium, said: "Britain’s fashion retailers are leading the way in developing their digital offering for discerning customers and that is really paying off in resulting sales figures. This month sees the highest growth in online sales of clothing for five months and the proportion of purchases we are making online has grown several percentage points in a year. This also represents the highest penetration ever recorded for Clothing since the inception of the online monitor. Footwear is telling a similar story where great websites and good online service have led to the second-highest proportion of footwear sales online ever recorded by our monitor.
"The overall strong performance is underpinned by the broadening of the ranges available online, from game consoles to garden furniture. For clothing and footwear we’re seeing a marked shift towards the seasonal ranges of lightweight jerseys, sandals, canvas shoes and outdoor wear while products with a World Cup theme are starting to sell across all gender and age groups."
David McCorquodale, Head of Retail, KPMG, said: "Online sales surged ahead in May, driving a third of non-food sales growth for retailers over the quarter and underscoring the importance of having a strong multichannel business. As the shift to online slowly continues, retailers must invest in analysing the data they are gathering about their online customers and use this to improve their total proposition.
"The rise of online gives retailers the opportunity to have unbridled insight into consumer shopping habits and it’s vital they take advantage of this and use it to inform their business strategy."
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.
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The June 2014 Monitor, covering the five weeks 01 June – 05 July, will be released at 00.01am Tuesday 15 July 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.
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