Retail records their Second-lowest online sales in June

Online retail epos sales growth rate has been affected by the fallout of the General Elections. It has slowed down dramatically recording second lowest June in 16 years.

According to the latest IMRG Capgemini e-Retail Sales Index, UK online retail sales up 9.5% year-on-year, the second lowest June growth rate since 2001.

In June 2014, it was only time it has been lowered, when it was up by 9.3%.

It was first time the growth has dipped into single-digit territory since October 2015.

The e-Retail Sales Index was published the same day when the National Statistics revealed the retail sales volume jumped to 1.5% in the three months to June.

Online sales continue to fall from May to June, influenced by the General Election and other factors such as rising inflation.

The warm weather also encouraged people to go out to high streets, reported footfall has been up by 0.8% in the month of June when compared to last year same month according to the latest BRC-Springboard footfall index.

IMRG and Capgemini believe this may have contributed to a contrast in fortunes for online retailers which experienced 11.7% growth in the month of June when compared to 31.4% recorded last year.

On the other side multichannel retailers have benefitted from use of click-and-collect orders as they recorded 8% growth compared to last year.

Retail sectors which experienced drop in online sales includes electrical by 13.9%, gifts by 8.2% and accessories dipped by 1.4%.

Online retail sector facing a storm at the moment, have to operate against the backdrop of continuing a wave of political uncertainty, rising inflation, a changing retail calendar and heat waves.

Low growth rate during election week which was recorded 3.4% “strongly suggests” the influence on online shopping behavior.

Principal consultant at Capgemini said despite a “relatively flat” June overall, there were some significant sector specific movements in both directions.

Summer sun celebrations drove beers, wines and spirits recorded the highest year-on-year growth since 2014.

On the other side, accessories saw its first ever year-on-year decline since 2008. To give you some perspective, its average year-on-year growth is 48%.

This is due to fall in consumer confidence levels given by current political and economic challenges, driving down spending on luxuries.

The other sectors worthy to mention include electrical, which has had the first June decline since 2003. In short a month of ups-and-downs leading to an overall pretty weak June.

By the impact of General Elections and factors like rising inflation affect the overall online sales in the retail epos sector.