UK Online Retail Sales Report summary
September 2024
Period covered: Period covered: 28 July – 24 August 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 sales growth rose by xx% in August YoY (value, non-seasonally adjusted), against an xx% rise a year ago.
Mini heatwave: Improved weather in August provided a welcome boost to consumers with above-average temperatures in the first half of the month and the hottest day reaching 34.8°C (12 August). A rise in summer gatherings boosted sales of BBQ and picnic foods, while gardening items were also in demand.
However, temperatures returned to average levels in the second half of the month, with Storm Lilian bringing strong winds and rain contributing to it being the wettest August in four years.
Promotional activity: Summer sales continued into August following Amazon Prime Day in July. This gave retailers the opportunity to clear stock ahead of new season arrivals particularly in clothing and footwear which has been hampered by changeable weather this year.
Notably, there was also widespread discounting within the non-store retailing (pure online retailers) category, with the retail price deflator falling xx% YoY, the sharpest decline since December 2021.
Sporting boost: The end to the Paris Olympics on 11 August saw the conclusion of the ‘summer of sport’ which boosted the performance of merchandise, athleisurewear and sporting goods.
Underlying environment
The economic outlook is mixed, as consumer confidence declines despite signs of improvement in broader economic conditions.
August confidence held steady at -xx followed by a sharp decline to -xx in September - the lowest since December 2023. Despite this, earnings continued to outpace inflation, growing by xx%, though real wage growth remains modest at xx%.
Inflation held steady at xx%, with core CPI rising to xx%, driven by higher airfares and rents, though offset by falling fuel and hospitality costs.
The Bank of England cut its base rate by 0.25% to 5%, easing mortgage rates and boosting housing activity, with house prices up 0.3% month-on-month. However, many consumers are focusing on saving, particularly on big-ticket items, reflected in a 10-point drop in GfKs major purchase index to -23.
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Online non-food sales increased
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Source: ONS, Retail Economics analysis
