Report Summary

Period covered: 25 August – 28 September 2024

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Online performance

Online retail sales rose by xx% year-on-year (YoY) in September, compared to an xx% increase a year ago.

The online penetration rate rose to xx%, from xx% rate a year ago and the sixth time this year penetration has been above xx%.

Key factors impacting performance this month include a mixed weather, promotional activity and improving macroeconomic backdrop.

Mixed weather: September saw fluctuating temperatures, with a warm start followed by a cooler spell which led to the coolest September in six years. Southern England was exceptionally wet, with some areas experiencing their wettest September on record.

This contributed to footfall remaining broadly flat compared to last year (0.1%, MRI Software),

Promotional activity: Promotional activity has been a key driver of sales during the summer, largely influenced by the unusual weather conditions in the UK. According to the Met Office, the UK experienced below-average temperatures, marking the coolest summer since 2015.

These cooler and wetter conditions particularly affected fashion retailers, as demand for seasonal clothing, especially summer collections, was lower than expected. With consumers hesitant to purchase weather-dependent items, retailers were left with excess stock.

Underlying environment

Inflation eased to xx% in September, marking the lowest rate in over three years. This faster-than-expected drop has bolstered confidence that interest rate cuts are on the horizon, with markets expecting a reduction in November.

While consumer confidence dipped to -xx, driven by concerns over personal finances and the upcoming Budget, inflation’s decline and the prospect of lower borrowing costs could help restore optimism in the months ahead.

SHEIN overtakes Boohoo turnover

Significant news this month in the digital retail space has seen SHEIN surpass Boohoo in UK turnover, marking a major shift in the fast-fashion market. SHEIN’s turnover surged to £1.55bn in 2023, compared to Boohoo’s £922m.

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SHEIN closes in on Asos