Online Retail Thrives Amidst Adverse Conditions

  • Online retail delivery order volumes increased by 9.6% year-on-year in March
  • First-quarter online retail order volumes grew by 12.5%
  • Total growth for the quarter was just below the forecasted 13% for 2018
  • Online sales revenue growth was up 15.4%
  • Heavy snowfall in March created challenges for delivery operations
  • On-time delivery performance down seven percentage points compared to March 2017
  • Next-day deliveries accounted for a higher share of orders than economy services this year
  • Next-day deliveries have grown for the past five years, but at a slower rate than in 2017
  • Easter falling in March may cause a temporary slowdown next month
  • Retailers are adapting to customer demands with automated warehouses and other innovations

Online retail order volumes experienced a strong first quarter, with delivery orders increasing by 9.6% year-on-year in March according to the IMRG MetaPack UK Delivery Index. This growth marks a total increase of 12.5% for the quarter, slightly below the anticipated 13% for all of 2018. Alongside this, online sales revenue surged by 15.4%. The initial week of March was marked by heavy snowfall across the UK, which posed significant obstacles for delivery operations. Consequently, on-time delivery performance in March 2018 fell seven percentage points compared to the same period last year. However, this dip isn’t solely attributed to weather conditions – except for January 2018, it has remained below 90% since July 2017, with a rolling weighted average over the past 12 months at 88%. The primary driver of this decline seems to be the rising use of next-day delivery services. Although next-day deliveries have grown for five consecutive years, their proportion was higher in March 2017 compared to this year. Andrew Starkey, head of e-logistics at IMRG, commented: ‘Despite high street struggles, online retail order volumes began the year on a positive note. The early arrival of Easter in March (April in 2017) might cause temporary slowdowns next month; however, this would likely be a brief setback. Retailers are adapting to meet customer demands by introducing innovations such as highly automated warehouses from companies like Shop Direct and Sports Direct.’

Factuality Level: 8
Factuality Justification: The article provides accurate information about online retail delivery order volumes and sales revenue growth, discusses the impact of weather on delivery performance, and mentions the trend of next-day deliveries. It also includes expert commentary from Andrew Starkey, head of e-logistics at IMRG. The article is well-researched and provides objective information without any clear signs of sensationalism or personal perspective.
Noise Level: 3
Noise Justification: The article provides relevant information about online retail delivery order volumes and sales revenue growth, as well as on-time delivery performance. It also discusses potential factors affecting these trends such as weather conditions and the shift towards next-day delivery services. However, it could benefit from more in-depth analysis of the underlying causes and consequences of these trends, and provide more evidence to support its claims.
Financial Relevance: Yes
Financial Markets Impacted: Online retail companies
Financial Rating Justification: The article discusses online retail delivery order volumes and revenue growth, which impacts financial performance of these companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk