With the lockdown still in place, online retail sales held strong in February, rising by 69.5% year-on-year. That’s according to the latest IMRG Capgemini Online Retail Index, which tracks the online sales performance of over 200 retailers.
Though falling slightly short of January’s recording-breaking 74% growth, February’s figures were still significantly higher than the rolling averages of 3, 6 and 12 months (+57.1% +42.5% and +42.7% respectively).
Breaking down the results, the positive picture was reflected across all categories, but there were some stand out performers. As the Government announced a roadmap out of lockdown and consumers started preparing for greater outdoor freedoms, both beer, wine & spirits and home & garden saw big jumps in sales, recording monthly gains of 64.7% and 131% year-on-year.
After a tough 2020, clothing sales also continued last month’s upward trend (+21.3%) and even footwear – the subcategory worst hit by the pandemic – reported growth of 8%.
Elsewhere, electricals maintained the same strong levels of growth seen for the past 12 months – up 158.5%.
Andy Mulcahy, strategy and insight director at IMRG, commented: “It’s become common for people to look for the ‘new normal’ across industries, but it might be too early to be focusing on that. Instead, it is more useful to think of a ‘current normal’ as things are still so unpredictable and susceptible to sudden shifts in customer behaviour. For example – even though there is a roadmap out of lockdown and the vaccination programme is going well, it’s difficult to anticipate exactly how people will behave as restrictions are eased.
“The ‘current normal’ in retail is for sustained pandemic-high growth rates across almost every product category. During lockdown one (22 Mar-15 Jun), the average rate of growth was +47%; for lockdown three (27 Dec-now) it is +74%. That rate of growth cannot be sustained once we get into April, but the extent to which spend will be diverted strongly away to ‘experience’ options such as travel, going out, live events etc. is a very tough question to answer.”
NAM Implications:
- Best consider online as a permanent grower…
- …at the expense of offline retail.
- Against a backdrop of reduced demand (scared, uncertain consumers etc.)…
- …where any suppliers growth has to come at the expense of the competition…
- …on & offline.
