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Digital Retail News

BRC-KPMG: November's online retail sales ended on a strong note

Online sales of Non-Food products in the UK grew 12.0% in November versus a year earlier. In November 2013, online sales rose by 16.0% over the previous year.

In November online sales represented 21.0% of total Non-Food sales of our Monitor, against 19.6% in November 2013. This is the highest penetration rate recorded since our monitor started in December 2012.

Health & Beauty and Household Appliances were the fastest growing categories online in November. The month was lacklustre but ended on a strong note due to a very successful Black Friday.

Online sales contributed 1.7 percentage points to the growth of Non-Food total sales in November. The three-month average contribution of online to Non-Food growth exceeded that of stores for the third consecutive month, achieving another all-time record proportion outside of December.

Helen Dickinson, Director General, British Retail Consortium, said: "This month brings fantastic news for retailers who have worked hard on their online presence, as the online penetration rate of non-food sales is at an all-time record. Every £1 in £5 of non-food purchases is spent online. Online sales are also contributing a larger proportion of growth to non-food sales compared to in-store.

"Black Friday was the retail event of the month and retailers offered consumers impressive discounts both online and in-store. The high volume traffic to websites meant that consumers also bought a large amount of full priced items and not just those on sale. Online sales growth was good for the month but there may have been a distortion caused by Black Friday with consumers delaying purchases until the end of the month in the hope of grabbing some bargains."

David McCorquodale, Head of Retail, KPMG, said: "Online orders reached record breaking penetration levels this November, as shoppers snapped up a bargain in the Black Friday sales. "However, retailers' online systems have been tested and some have been found wanting. The sheer weight of consumer demand caused some websites to buckle under the pressure and these retailers need to sort this capacity issue out and quickly or face losing sales to competitors with more robust systems. Online sales will help to drive growth for retailers this Christmas and are a crucial element of their overall strategy."

Source : Helen Dickinson - British Retail Consortium

09 December 2014

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