Cold Snap Boosts E-Commerce Growth
- UK online retail sales increased by +13.1% YoY in February
- ‘Beast from the East’ contributed to a +3.5% increase in sales compared to the previous week
- Health and beauty sector saw its highest growth in 5 years at +33.85% YoY
- Clothing sales up by +14.9% YoY, with accessories and footwear leading the way
- Gifts sales grew by +9% YoY, contrasting last year’s -3.3% decline
- Overall conversion rate dropped to 4.2% from 4.6% in 2017
- Extreme weather influences shopping habits, pushing consumers towards online shopping
The UK’s online retail sales experienced a significant increase of 13.1% year-on-year (YoY) in February, as reported by the IMRG Capgemini e-Retail Sales Index. The ‘Beast from the East’, a cold snap that hit the country in late February, led to a 3.5% rise in sales compared to the previous week. The e-Retail Sales Index also highlighted sectors that performed exceptionally well during this period. Health and beauty saw its highest growth in five years at +33.85% YoY, while clothing continued its strong YoY growth with a +14.9%. Accessories and footwear were the top performers within this category, growing by +22.3% and +20.4%, respectively. Gifts also saw a positive shift at +9% YoY, contrasting last year’s -3.3% decline. Despite these strong sales figures, the overall conversion rate dropped to 4.2% from 4.6% in 2017. Bhavesh Unadkat, principal consultant for retail customer engagement at Capgemini, commented on the situation: ‘February’s sales patterns clearly demonstrate the impact of extreme weather on shopping habits as people opted for online shopping over braving the cold streets.’ He further added that they anticipate this trend to continue in next month’s results.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about UK online retail sales growth, sector-wise performance, and the impact of extreme weather on shopping habits. It cites a reputable source (IMRG Capgemini e-Retail Sales Index) and includes relevant quotes from an expert in the field.
Noise Level: 3
Noise Justification: The article provides relevant information about UK online retail sales and their growth during a specific period, with some insights on the impact of weather conditions on consumer behavior. However, it lacks a comprehensive analysis or exploration of long-term trends or consequences of decisions made by powerful people in the industry.
Financial Relevance: Yes
Financial Markets Impacted: Online retail companies and related stocks
Financial Rating Justification: The article discusses the increase in online sales for various sectors such as health and beauty, clothing, accessories, footwear, and gifts due to extreme weather conditions. This information can impact the financial performance of these companies and their respective stocks.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event happening in the last 48 hours.
www.retailsector.co.uk