UK online retail growth rate falls in January year-on-year

According to foreign media reports recently, data from the IMRG Capgemini Online Retail Index showed that the total growth rate in 2021 was 2.7%. Online retail growth in the UK fell 24.4% year-on-year in January , which was the lowest annual growth rate since people returned to physical stores for shopping.

In terms of sales categories , fashion categories had the highest growth rate in January, with clothing increasing by 5.4% year-on-year, and women's clothing (+25.2%), men's clothing (+16.0%) and footwear (+19.4%) all showing positive performance. On the contrary, other categories performed the opposite, with the worst growth including skin care products, which fell by 48.2%, cosmetics, which fell by 45.7% , and electrical appliances, which fell by 36.7%.

Andy Mulcahy, Director of Strategy and Insight at IMRG , commented: “ With strict lockdowns in place in the first quarter of 2021 driving a significant increase in online sales , it is natural that sales will fall further in the first few months of 2022. ”

Lucy Gibbs, senior manager, analytics and AI retail lead at Capgemini, added: “January was a mixed month for the retail sector , with our online index reporting its largest year-on-year sales fall ever, while the high street saw the opposite .

“ This is due to lower UK January sales growth compared to the same period last year , compared to last year’s lockdown store closures . As the global pandemic stabilises , offline sales performance will begin to normalise and 2022 is expected to bring a more stable trading period, but the outlook remains uncertain as we recognise that the economic and logistical challenges of the past two years are over. ”

“Orders fell more than revenues this month as ABV increased 24%. This may be an early indicator of rising prices, reflecting ongoing supply chain disruptions and underlying cost challenges. The primary purchase index also fell 4 points in January as economic pressures from inflation and currency depreciation exacerbated consumer concerns.”

“Capturing share of wallet amid growing bills and pent-up demand for travel, events and dining out will continue to be our focus moving forward in 2022.”

UK online sales rise in January

Year-on-year decline