19 May 2024, 22:49
By Furniture News May 13, 2021

Online retail sales hold up as stores reopen

Despite the reopening of the high street and against strong figures for April 2020 (the first full month of the first lockdown, when growth was +44%), online retail sales continued to grow in April, rising by +10.2% YoY, according to the latest IMRG Capgemini Online Retail Index.

That said, there was some evidence of the impact of non-essential shops reopening in the MoM data, which showed a decline of -12% from March (a slight decline is typical between March and April, usually around -1%, says IMRG).

Andy Mulcahy, strategy and insight director, IMRG, says: “What impact did the reopening of the high street have on retail? Several large retailers I have spoken to say the first week was amongst the strongest they have seen across online and retail platforms – one even recorded their biggest day ever overall. While online growth might have dropped away from +70-80% between January and March to +10% in April, this is largely as growth rates are now comparing with pandemic-period rates from 2020, which were so strong that it is hard to build upon that performance.

“In January, we mapped out how growth could look if things go relatively well for online, relatively badly, and somewhere in the middle. In April, retail generally seems to have done well, and the rate of online growth is currently somewhere between average and good in that forecast. As people get more options for spending their money in later May and into June, that will provide a sterner test.”

Lucy Gibbs, managing consultant, retail insight at Capgemini, adds: “This month’s +10% increase on 2020 is particularly impressive when considering last April’s +44% YoY growth. It has been over a year since the first UK lockdown, therefore growth online on top of this is significant. 

“We can see the impact of the reopening of the high street when we look at MoM figures, however, despite the strong growth – we would typically see April compared to March as flat, however this year April is -12.0% lower. This trend can also be seen in retail type, as multichannel retailers dropped to +5.7% growth in April versus last year, whereas online-only retailers maintained growth in line with the beginning of the year at +20%."

© 2013 - 2024 Gearing Media Group Ltd. All Rights Reserved.