Following a summer of slow growth, the new school year and change of season has failed to boost sales in the online retail market.
Data from the IMRG Capgemini Online Retail Index shows online sales rose just 0.6% year-on-year (YoY) in September.
In fact, despite the extended period of challenging results, September’s figures (excluding travel) failed to match the already low 6- and 12-month rolling averages (respectively +2.3%, +5.3%), and plummeted well below the 5-year average (+10%).
Analysis by category, shows clothing saw its first sales fall in over two years, down 1.2% against last year. However, health & beauty saw sales grow by 16.4%, while the warmer weather at the start of the month led to an increase in sales of beers, wine and spirits sales, rising by 15.3% compared to a 11.4% fall in 2018.
Home and garden saw a slight reprieve from last month’s decline, growing 1.22% overall. However, a number of the other categories continued their downwards sales spirals, including electricals (-15.47%) and gifts (-18.2%).
Bhavesh Unadkat, principal consultant in retail customer engagement at Capgemini, said: “September’s results will have triggered some clear warning signs for retailers as sales are stuttering at the beginning of the ‘golden quarter’; online sales are up only 0.6%, and 9 out of the 15 sectors we track reported negative performance in comparison to last year.
“Increasing pressures are hitting consumer spending, with low confidence in the political climate and the warmer weather at the start of the month both attributed by retailers as critical factors in this month’s results.
“Retailers will now be looking ahead at how to make the most out of the peak period. With Black Friday promotional discounting on the horizon and consumers expectations set for big reductions, this may prove challenging for retailers to manage after several difficult months.”
