BRC-KPMG: Stores outperform online sales in January

- Online sales of Non-Food products in the UK grew 14.9% in January versus a year earlier, when they had risen by 11.7% over the previous year. This is the second best performance since June 2015. January's online sales performance was ahead of its 3-month and 12-month averages of 14.0% and 12.7%, respectively.

- In January 2016, Online sales represented 21.5% of total Non-Food sales, against 20.1% in January 2015. This is the second highest penetration rate since the inception of this monitor in December 2012, indicative of the popularity of online shopping during the January sales.

- Toys & Baby Equipment was the fastest growing category, achieving its best performance since January 2015. This was followed closely by Health & Beauty and Other Non-Food, with the latter reaching its fastest growth rate since August 2014 and making the largest contribution to Online Non-Food sales growth.

- In January, Online sales contributed 2.4 percentage points to the year-on-year growth of total Non-Food sales, while stores made a larger contribution.

Helen Dickinson OBE, Chief Executive, British Retail Consortium, said:"While Online continued to be a key driver of growth for retailers in January, after playing a vital role in driving sales over the Christmas period, overall growth was more balanced across both channels. Online's contribution to the growth of Non-Food sales in January, 2.4 percentage points, was outperformed by that of Stores. For example footwear and furniture sales experienced more growth in stores than online, a sign that the high street's attraction remains strong. Online sales were up by 14.9 per cent, close to the Christmas record and the second best performance since June. The top performing non-food category was toys and baby equipment, as the popular lines sold out before Christmas became available again. The penetration rate for online was 21.5 per cent, up slightly on the same month last year, and whilst a couple of categories gave away to the stores a number of others, including clothing, saw their highest ever recorded online penetration rate."

David McCorquodale, Head of Retail, KPMG, said: "While online growth slowed slightly in January to 14.9 per cent, the popularity of this channel continued from December with penetration rates rising to 21.5 per cent. Retailers encouraged shoppers to beat the back-to-work blues with a variety of seasonal e-promotions. Fashion sales were particularly popular as consumers took full advantage of clearance sales and the colder weather encouraged purchases of heavier knits and woollens.

"As use of online channels continues to increase, retailers continue to invest in their logistics, fulfilment and returns networks to improve the customer experience."

Source : British Retail Consortium
www.brc.org.uk/brc_news_detail.asp?id=2928