The IMRG Capgemini Online Retail Index released today has found that after recording the steepest drops in history for two months in a row, the fall in online retail sales appears to be slowing, which could reportedly signal a return to stability in the near future.
The report, which tracks the performance of over 200 retailers, stated that online sales fell by -9.6% year-on-year last month compared to June’s decline of -14.1%. However, July’s performance continues to fall “well below” the 6-month (+13.44%) and 12-month (+29.9%) averages, but beats the 3-month average of -10.63%.
It also claims that other “encouraging” signs could be seen in the month-on-month (MoM) figure, where a drop of -4.4% was lower than what would reportedly be expected between June and July according to pre-pandemic patterns, and in the Average Basket Volume (ABV) which reached its highest total spend for 2021 at £134 – up by 60% against July last year.
According to the index, the standout sectors were beer and wine, which saw a +29.9% growth, and health and beauty, which saw a decline of -36.1%.
Andy Mulcahy, strategy and insight director at IMRG, stated: “In July 2021, month-on-month (MoM) growth was ahead of where it usually is at this point of the year; with the amount spent online declining -4.4% against June, whereas -8% was typical in 2020 and 2019.
“For the previous three months, the MoM rate has tracked below where it would normally be as shopper spend has been redistributed across other areas following the phased easing of restrictions.”
He cites the ‘pingdemic’ as a possible cause of the easing of sales losses as people are forced into isolation.