- Online sales of non-food products in the UK grew 16.0% in November versus a year earlier. In November 2012, they had increased by 7.5% over the previous year.
- In November, online sales represented 19.9% of total non-food sales of our monitor, a record proportion selling online. Excluding online sales, Other Non-Food would have shown a decline in November.
- November online growth was the best this year and, excluding December months, the best in three years.
- Online sales contributed 2.0 percentage points to the growth of Non-Food total sales. In the last three months, the contribution averaged 1.6 percentage points – over half of the total non-food growth.
Helen Dickinson, Director General, British Retail Consortium, said: "We said last month more of us will be clicking into Christmas than ever before this year, and November fuels that trend further, setting new records both for growth and penetration of non-food sales. November’s growth rate is the best so far this year and the best in three years if you exclude the months of December.
"The proportion of goods bought online increased across all categories during the month, with clothing having a particularly strong showing. The signs are that many of us went online during the month to make an early start on our present shopping, and the Cyber Monday effect is likely to continue that trend into December.
"Faster delivery times and the growing popularity of Click & Collect means customers are ready to leave ordering online closer to Christmas with the confidence that their goods will still arrive on time.
"Nonetheless, these figures highlight that, while online may have come of age last Christmas, this year it’s cementing its position as a popular choice at all stages of the customer journey."
David McCorquodale, Head of Retail, KPMG, said: "Retailers’ digital channels have proved to be a major pillar of their sales strategy this year, with one in five products bought online this Christmas. It is a sobering thought that without the online transactions buoying them up, Other Non-Food sales would have actually fallen on the previous year’s levels.
"Online sales will continue to soar in the run up to Christmas, reaching record heights in December, with transactions spiking on Mega Monday when the last day for guaranteed delivery before Christmas falls due.
"With multi-channel retailing now firmly established, what lies ahead for the retailer is considerable investment in digital analytics and logistics to improve personalisation and meet the increasing demands of the consumer."
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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British Retail Consortium
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mobile: 07770 737 994
The December 2013 Monitor, covering the five weeks 24 November – 28 December, will be released at 00.01am Friday 10 January 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.
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