Wet Weather and Currency Influence Shopping Habits
- Online retail delivery order volumes increased by 20.6% year-on-year in January
- January saw the strongest growth for online orders since 2013
- Footfall fell to its lowest January rate in five years due to above-average rainfall
- 90% of parcels arrived on time in January, up from December’s 85%
- Sterling’s weakness against the euro led to a higher percentage of orders going to EU destinations
- Online sales revenue growth was 13.9% in January
- High returns volume after Christmas may have influenced online orders
Online retail experienced a significant surge in January, with delivery order volumes increasing by 20.6% year-on-year, according to the IMRG MetaPack UK Delivery Index. This marks the strongest growth since 2013. Concurrently, footfall reached its lowest January rate in five years, potentially due to heavy rain keeping shoppers away from high streets. Despite increased demand for online orders, parcel delivery success rates rose to 90%, improving from December’s 85% but still below the previous year’s 93%. The primary cause of the long-term decline in performance is likely the rise in faster, next-day delivery services. The pound’s continued weakness against the euro, hovering within €1.12 – €1.15 range, led to a record high of 70% orders going to EU destinations since the index began in 2011. Andrew Starkey, IMRG’s head of e-Logistics, noted that despite economic uncertainty, online sales revenue grew by 13.9%. The wet weather in January may have deterred high street visits, while post-peak returns could also impact volume. Maria Dahlqvist Canton, MetaPack’s global marketing director, commented on the correlation between decreased footfall and increased online orders.
Factuality Level: 8
Factuality Justification: The article provides accurate information from a reliable source (IMRG MetaPack UK Delivery Index), presents data on online retail delivery order volumes and footfall, discusses possible reasons for the trends observed, and includes expert opinions. It does not include any irrelevant or misleading information, sensationalism, redundancy, opinion masquerading as fact, bias, invalid arguments, logical errors, inconsistencies, or faulty reasoning.
Noise Level: 3
Noise Justification: The article provides relevant information about online retail delivery order volumes and their growth, as well as some analysis of factors influencing this trend. It also includes quotes from experts in the field to support its claims. However, it could benefit from more in-depth exploration of the reasons behind the increase in EU orders and the impact of currency fluctuations on online retail.
Financial Relevance: Yes
Financial Markets Impacted: Online retailers and delivery companies
Financial Rating Justification: The article discusses the increase in online order volumes, impacting the performance of online retailers and delivery services, as well as the influence of currency exchange rates on the destination of orders.
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.
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