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January Sees Highest Online Sales Since Pandemic Began

Amid the tightening of lockdown measures in the UK, January recorded the highest rate of online growth since the pandemic began at 74% year-on-year.

It was also highest January sales recorded by the IMRG Capgemini Online Retail Index, which tracks the performance of over 200 retailers.

The boom in sales was reflected across all categories, with health & beauty and beer & wine sales up 102% and 105% respectively. Perhaps in a nod to parents stocking up on learning-from-home essentials, electrical sales growth remained extremely high at 206%. As January discounts rolled out widely even clothing sales, which have suffered throughout each of the lockdowns, recorded their highest growth since 2017 at 22%.

Other notable spending trends in January included a surge in online-only retail sales, as consumers navigated the total shut down of the high street. While the gap between multichannel and online-only has widened since the viral outbreak, the latter surged to a pandemic high of 31.2%. Similarly, mobile commerce was up 169.1% – the highest rise in spend since 2013.

Lucy Gibbs, Managing Consultant – Retail Insight at Capgemini, said: “75% year-on-year growth is the highest we’ve seen in any month across the whole of the pandemic and almost 10 times the growth in January last year. January typically sees more subdued sales and a drop off from Christmas trading, however the anticipation of a ‘return to normal’ met the reality of challenges in an ever-evolving pandemic and customers once again turned to online shopping during the third national lockdown.

“Electrical online sales hit a new record for the sector at +206%, potentially related to parents sourcing the technology needed to power home schooling and entertainment. Meanwhile, an uptick in clothing performance is promising for the sector which was hard hit last year, perhaps an anticipation of change in the new year boosted by sales and new season products.

“The gap between retailers who thrived last year and those who were struggling to survive is becoming clear as news of brand consolidations are hitting the headlines with a focus on online value over the physical estates; what this means for the high street is yet to be determined, however it is clear that digital interactions will further dominate the future shopping experience.”