New data offers some insight into how the coronavirus outbreak is impacting online consumer shopping habits.
During the first week of the government’s isolation guidelines (commencing 15 March), online retail sales were down 2.2% year-on-year (YoY), according to the latest IMRG Capgemini Online Retail Index, which tracks the online sales performance of over 200 retailers.
Though fairly flat, the result concealed a much more tumultuous picture at a category level. One of three standout categories – health & beauty – saw a 31.6% jump in online sales (7.3% WoW). This growth builds on a strong six-month performance by the sector, as January and February online sales grew by 4.6% and 17.6% respectively. However, the recent marked increase in the figure is particularly significant when compared to 2019’s average sales growth of 20.6%.
Online sales of electricals also spiked, up 42.4% YoY (43% WoW), as many Britons reportedly rushed to buy home office equipment, games consoles and freezers to cope with an extended stay at home. Meanwhile, demand for home improvement products also contributed to a 13.8% YoY (10% WoW) uptick in sales for home & garden.
On the other end of the spectrum, clothing saw demand fall through the floor, with sales plummeting by 26.7% YoY (-22% WoW). This result was mirrored across clothing’s sub-categories, with footwear sales for example tumbling 38.2% YoY (22.9% WoW).
Whilst most retailers are currently keeping their online businesses operating, the likes of Next and River Island shutdown their websites last week amid safety concerns for staff working in warehouses.
NAM Implications:
- Having acknowledged the obvious…
- …time for all members, all categories and trade sectors to redefine their business models…
- …or slowly perish under a redundant reality.
