Online Sales Plummet as High Street Struggles Persist
- Online retail sales in May experienced the worst growth on record with a 1.9% year-on-year increase
- Electricals and gifts categories saw significant declines
- Beers, wines, and spirits recorded negative growth for the first time this year
- Clothing growth rate slower compared to last year
- Accessories experienced worst performance in 10 years
- Footwear was the only clothing subsector with positive growth at 6.7%
- Health and beauty sector continued strong monthly performance with a 22.6% increase
- Mobile commerce up by 8.4% in May, smartphones at 35%, tablets flat at 0.3%
- Retailers face challenges due to high street issues, changing customer behavior, and low shopper confidence
May’s online retail sales growth hit a record low with only a 1.9% year-on-year increase, according to the IMRG Capgemini eRetail Sales Index. Electricals and gifts categories saw significant declines, while beers, wines, and spirits recorded their first negative growth this year. Clothing growth was slower compared to last year, with accessories experiencing their worst performance in a decade. Health and beauty continued strong monthly growth. Mobile commerce increased by 8.4% as m-commerce reached 35%. Retail experts attribute the struggles to high street issues, changing customer behavior, low shopper confidence, and shifting competitive landscape.
Factuality Level: 8
Factuality Justification: The article provides accurate information about online sales growth trends in May 2019 compared to previous years, including specific categories and their performance. It also includes expert opinions from industry professionals to explain the reasons behind these trends.
Noise Level: 6
Noise Justification: The article provides relevant information about online retail sales growth trends but includes some repetitive statements and uses phrases like ‘state of online retail’ which may not add significant value to the reader.
Financial Relevance: Yes
Financial Markets Impacted: Online retailers and related companies
Financial Rating Justification: The article discusses the performance of various sectors in online retail, including electricals, gifts, clothing, accessories, footwear, and health and beauty. This information can impact the financial markets as it reflects consumer behavior and spending patterns, which can affect the stock prices of these companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
www.retailsector.co.uk