Olympics and warm weather causes August sales to slow

UK online retail sales slowed down in August as the Rio Olympic Games and the sunny weather stole shoppers attention away from buying the new collections, according to figures released by the British Retail Consortium and KPMG.

Online sales of non-food products in the UK grew 6.2 percent in August, well below the 12-month average of 11.1 percent. Over the three months to August, online sales of non-food products grew by 8.8 percent year-on-year, while over the same period, store sales fell, posting declines of 1.7 percent on a total basis and 1.9 percent on a like-for-like basis.

In August 2016, online sales represented 20.2 percent of total non-food sales in the UK, against 19.1 percent in August 2015. This is the eighth consecutive month that the non-food online penetration rate has remained above 20 percent.

British Retail Consortium chief executive, Helen Dickinson said: “Today’s figures are a reflection of a month of lower sales growth across the board as people focussed their energies on outdoor leisure activities rather than shopping.

“The fact that online continues to be the key driver of sales growth is both testament to and a driver of innovation in the industry. Despite continuing uncertainty and swings in consumer confidence since the referendum, retailers continue to invest in optimising their digital platforms, which have already become an integral part of the customer journey.”

Sectors that suffered the most included women’s footwear, which KPMG stated experience negative growth, due to shoppers reluctance to embrace and buy the new autumn collections.

KPMG head of retail, David McCorquodale, added: “No doubt the category will improve as the weather cools in the coming months. With the summer holidays now coming to an end, ‘back to school’ marks the next opportunity for online retailers to grab the attention of shoppers.”