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BRC-KPMG: Strongest online January since 2009

Online sales of non-food products in the UK grew 19.2% in January versus a year earlier. In January 2013, they had increased by 13.5% over the previous year.

In January, online sales represented 17.4% of total non-food sales of our Monitor, against 16.3% in January 2013.

January online growth was the strongest since January 2009.

Online sales contributed 1.2 percentage points to the growth of Non-Food total sales. In the last three months, the contribution averaged 1.8 percentage points – almost one third of the total non-food growth.

Helen Dickinson, Director General, British Retail Consortium, said: "Another strong set of sales figures, up 19.2 per cent for non-food items in January, showed the continuing growth of online and its increasing importance as part of the retail mix in the UK.

"Embracing omnichannel sales has been a big driver of business for UK retailers. We've seen an ever-more discerning customer taking good advantage of click and collect and other innovative services. The combination of an online presence with a bricks and mortar offering is becoming increasingly compelling.

"There's no doubt that online is driving structural change within the sector and retailers will continue to invest heavily to provide the seamless experience between channels that today's shoppers demand. Our figures showed that 17.4 per cent of all non-food spending is online and we're expecting this number to continue to rise as operations become more efficient, collections more convenient, deliveries faster and technology more integrated."

David McCorquodale, Head of Retail, KPMG, said:

"With growth at 19 per cent and penetration from online sales running at 17 per cent, this channel is much more than the new frontier for retailers and really is the growth engine for the sector. Many retailers are investing heavily in analytics and supply chain fulfilment to drive personalisation of offer to the consumer and differentiate themselves from competitors through delivery performance. As online growth drives about a third of non-food sales expansion, retailers are doing all they can to fully embrace the growth prospects offered."

Source : Helen Dickinson - BRC Director General
www.brc.org.uk/brc_news_detail.asp?id=2578

11 February 2014
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Thank you for the excellent presentation that you gave at Woodbury Park on Thursday morning. It was very interesting and thought-provoking for our Retail members. The feedback has been excellent.

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Martin Elliott. Chief Executive - Home Hardware.
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