Online Retail’s Supremacy Over High Streets Continues to Grow
- High street sales slumped in July
- Online trade surpassed high street sales
- Total like-for-like retail sales grew by +2.8%
- In-store sales increased by +0.8% compared to last year
- Online sales rose by +8.3% compared to the same month last year
- Fashion ecommerce sales grew by +10.1%
- Seventh consecutive month of lower in-store sales
- Consumers under pressure due to high food inflation
- Retailers should offer affordable luxury items for larger spends
- August may be difficult for ramping up sales
High street sales have slumped in July, according to business advisory firm BDO. The total like-for-like retail sales in-store and online grew by +2.8% compared to +3.0% in July 2024. In-store revenues increased by +0.8% compared to the same time last year, while online sales rose by +8.3%. Fashion ecommerce sales grew by +10.1%, outpacing in-store sales at +1.3%. This marks the seventh consecutive month of lower in-store sales, reflecting the sector’s struggle to attract shoppers. BDO’s Sophie Michael attributes this to consumers under pressure from high food inflation and limited disposable income for non-essential spending. The school holidays may further challenge retailers as families prioritize experiences over shopping. Online retail’s agility and access to better deals contribute to its supremacy, making it difficult for bricks-and-mortar stores to compete. Retailers should focus on affordable luxury items to attract customers and convert summer stock into sales revenue.
Image Alt: Empty shopping street
Factuality Level: 8
Factuality Justification: The article provides accurate information about the decline in high street sales compared to online trade, citing data from BDO’s high street sales tracker. It also includes expert opinions on the reasons behind this trend and potential strategies for retailers to improve their performance. The only minor issue is the use of outdated dates (July 2024) which may affect the credibility slightly.
Noise Level: 6
Noise Justification: The article provides relevant information about the decline in high street sales compared to online trade, but contains some repetitive statements and minor factual errors (e.g., July 2024 instead of July 2021). It also briefly touches on potential solutions for retailers, such as offering affordable luxury items, without providing much depth or analysis. The article does not delve into the underlying causes of these trends or explore their long-term implications.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses high street sales slumping in July, with online trade surpassing physical store sales. This indicates a shift in consumer behavior due to economic challenges and inflation affecting disposable income. The impact is on the retail sector, specifically bricks-and-mortar stores struggling to match online retail’s agility and adapt to changing consumer preferences.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: The article discusses a decline in high street sales and the growth of online sales, but it does not report on any extreme event that occurred in the last 48 hours.·
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