Online Retail’s Mixed Performance in 2019
- UK online retail sales grew by 9.4% year-on-year in December 2019
- Q4 growth rate was 11.3%
- November’s peak performance contributed to the surge with +16.4% increase
- Black Friday sales period boosted online retail
- Weak first half of the year led to a +6.7% annual growth
- Pure online only retailers outperformed traditional players
- Budget retailers had a good year, mid-tier and premium underperformed
- Average basket value fell 25% in November and December
- Consumer confidence increased by +3 points in December
UK online retail sales experienced a significant increase of 9.4% year-on-year in December 2019, according to the IMRG Capgemini Online Retail Index. The Q4 growth rate reached 11.3%, primarily driven by November’s peak performance of +16.4% and the later Black Friday sales period. Despite this, the overall annual growth rate was the lowest on record at +6.7%. Weak demand earlier in the year led to a slow start, with growth only reaching +4.9% up until October. However, a strong December performance, combined with November’s surge, made the full-year result appear better at +6.7%, although still below the forecasted +9%. Pure online retailers outperformed traditional players, while budget retailers enjoyed growth and mid-tier and premium underperformed. The average basket value dropped by 25% in November and December, but consumer confidence increased by 3 points in December.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the UK online retail sales growth, citing specific numbers and sources (IMRG Capgemini Online Retail Index). It also includes quotes from experts in the field to provide additional context and analysis. However, it does contain some speculation about future trends and potential improvements in consumer confidence.
Noise Level: 4
Noise Justification: The article provides relevant information about UK online retail sales growth and offers insights from experts in the field. It discusses the factors that influenced the results and offers some analysis of the data. However, it could benefit from more detailed explanations and context to help readers understand the implications of these trends for the industry and consumers.
Financial Relevance: Yes
Financial Markets Impacted: Online retail companies and related stocks
Financial Rating Justification: The article discusses the growth of online retail sales in the UK, which can impact the performance of online retail companies and their respective stocks.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The information discusses online retail sales growth and performance, but it does not describe any major disasters or crises.
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