Digital Transition Boosts Online Shopping
- UK online retail sales increased by 19% in April
- Highest YoY increase since November 2016
- Overall market conversion rate fell for the fifth consecutive time this year
- Smartphone sales have lower conversion rates
- Average basket values increased for multichannel retailers and online-only
- Clothing and garden sectors saw growth in April
- Home sector experienced a decline of 15.6%
- Online retail sales growth higher than expected in 2018
- High street facing a digital transition
UK online retail sales experienced a significant increase of 18.8% year-on-year (YoY) in April, according to the IMRG Capgemini e-Retail Sales Index. This marks the highest YoY growth since November 2016 despite Easter falling in March this year. The overall market conversion rate declined for the fifth consecutive time this year, likely due to an increase in smartphone sales with lower conversion rates. Average basket values increased for multichannel retailers and online-only stores. Warm weather in April positively impacted various sectors, while clothing and garden sectors saw growth of 15.6% and 12.0%, respectively. The home sector experienced a decline of 15.6%, resulting in an overall increase of 4.6% compared to last year. Andy Mulcahy, strategy and insight director at IMRG, attributes the higher-than-expected growth to improved economic conditions and a faster digital transition. Despite high street struggles, shoppers are still spending as much as before, just shifting their preferences towards online shopping.
Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about UK online retail sales growth, citing specific figures and sources (IMRG Capgemini e-Retail Sales Index), discussing various sectors’ performance, and offering expert insights on the reasons behind the trend. It also presents a balanced perspective on the shift from high street to online shopping.
Noise Level: 3
Noise Justification: The article provides relevant and informative content about UK online retail sales trends, with some analysis of the factors contributing to the growth. It also offers insights into the impact on different sectors and compares it with previous periods. However, it could have provided more context or data for a deeper understanding of the high street’s situation.
Financial Relevance: Yes
Financial Markets Impacted: UK online retail sector
Financial Rating Justification: The article discusses the growth in UK online retail sales and its impact on different sectors, which can affect the financial performance of companies operating in this market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: No extreme event mentioned in the article, just a report on UK online retail sales growth.
www.retailsector.co.uk