According to a report by IMRG, online retail sales in the UK saw a decline of 4.1% in February compared to the previous year. This follows a significant drop of 27.6% in February 2022, which marked the largest monthly decline ever reported in IMRG’s Online Retail Index. The clothing sector was particularly hard-hit, experiencing an 8.7% year-on-year decrease and continuing its struggle for growth since October 2022.
Interestingly, despite the cold weather, the gardening category emerged as the best-performing sector, with a growth of 38.7%. This suggests that consumers were more focused on improving their homes and gardens rather than purchasing new clothes. It is possible that consumers with disposable income, especially homeowners, were less concerned about buying new-season fashion due to uncertain weather conditions. Instead, they may have prioritized buying gardening supplies such as dahlia tubers, tomato seeds, or fence panels.
However, there was some good news for style-focused sectors. IMRG noted a surge in sales of traditional Valentine’s Day gifts in February. In the week starting February 5, there was a week-on-week increase of 21.9% in gift sales and 23.1% in fragrance sales. This indicates that retailers successfully capitalized on the demand for Valentine’s Day items, benefitting from targeted marketing strategies.
Andy Mulcahy, strategy and insight director at IMRG, commented on the state of online retail sales, acknowledging that after the significant growth experienced during the pandemic, volumes have been declining for almost two years. While February did not see growth compared to the steep decline in February 2022, Mulcahy believes that growth will eventually return in a modest manner. He also highlighted that the basket value and conversion rates have stabilized, signaling the need for retailers to reassess their strategies and focus on rebuilding their businesses.
Overall, the February report by IMRG highlights the challenges faced by the UK online retail sector. While clothing sales struggled, there were some positive trends in other categories such as gardening and gift sales. As the industry moves forward, retailers will need to adapt their strategies to meet changing consumer preferences and navigate the post-pandemic landscape.
Useful links:
1. BBC News: UK online retail sales slump amid pandemic uncertainty
2. Reuters: UK online retail sales suffer largest plunge ever in February 2022
