ONS Retail Sales: Online Continues Retail Takeover

The Office for National Statistics has released September retail sales data, shining a light on the current state of the UK retail sector.

Main points:

• In the three months to September 2018, the quantity bought in retail sales increased by 1.2% when compared with the previous three months, with strong sales in “other stores” and online retailing.

• The increase of 3.9% for the quantity of goods bought in “other stores” for the three months to September 2018 was the largest overall contributor to the growth in total retail sales, due largely to strong growth in watches and jewellery stores.

• In September 2018, the quantity bought declined by 0.8% when compared with August 2018, due mainly to a large fall of 1.5% in food stores; the largest decline in food store sales since October 2015.

• When compared with September 2017, the quantity bought in September 2018 increased by 3.0%, with growth across all sectors except department stores.

• Online sales as a proportion of all retailing fell slightly to 17.8% in September 2018 from the 18.0% reported in August 2018, yet food stores and clothing stores both reported record proportions of internet retail at 5.8% and 18.2% respectively.

Comment from CEO and Business Growth Expert at Yomdel, Andy Soloman:

“A slight resurgence from the high street has seen a very marginal decline in online sales as a proportion of all retail on a monthly basis, but it’s clear that e-commerce has continued to envelop the UK retail sector with an 11% increase when compared to this time last year.

We’re seeing this growth across the board in all retail categories and this really demonstrates the momentum that continues to build behind a changing consumer mentality and preference.

Of course, this growth is strongest across areas offering the greatest convenience and saving, with household goods seeing the largest year on year growth and textiles, clothing and footwear also performing very strongly.

The only areas to have seen a decline are the less conventional non-store retailing, non-food items, but most notably our department stores, with a huge monthly decline of -9.6%.

These statistics echo the situation we are currently seeing on high streets across the UK and those that fail to pivot with this changing landscape to offer a more streamlined, digitally integrated proposition, will no doubt continue to struggle.”

Source : Insight DIY Team, ONS and Yomdel

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