Sales at discount retailers fell 15% in May across the UK, leading to an overall 8.7% year-on-year drop in these types of purchases in the region, according to a statement from Monday, June 13 press regarding the latest IMRG Capgemini Online. Retail Index, which tracks the online sales performance of over 200 retailers.
Luxury retailers were down 3.6% year-over-year in May, while mid-market retailers were up 0.5% from the same period last year, the statement said. . May’s results were down 0.6% from April retail sales in the UK, an anomaly since May is usually higher than April.
Those looking for glimmers of optimism can point to the average basket value of $184, up more than $7 from the previous high in April, according to the statement. The fact that sales were down 8.7% anyway is a reflection of ongoing inflation hikes and perhaps customers are ordering more to avoid multiple delivery charges on their purchases.
Website traffic was up 8% year-over-year, but many retailers said they were facing “long buying cycles as consumers stay in the buying phase longer. reflection,” the statement said.
Online apparel sales were up 14% from May 2021, with womenswear up 18% and menswear up 12% during that time, the statement said. Online sales of health and beauty products have fallen 28%, largely because shoppers are making these purchases in person after two years of pandemic shutdowns and quarantines.
“There is no disguise, May’s performance was pretty awful online,” Andy Mulcahy, IMRG’s director of strategy and insight, said in the statement. “April results suggest growth may be flat, but it is now clear that the economic situation is having a profound impact on demand. If it weren’t for Jubilee, which produced a slightly better week than the others, the decline could have been double digits versus negative growth for the same month last year.
Meanwhile, Google, Meta, TikTok and other companies in the online advertising industry may face a new regulatory landscape in the UK due to new legislation, the creation of a new regulator and even enforcement action after government officials closed a public consultation on its Online Advertising Program on Wednesday (June 8) that could mean tougher online advertising rules.
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