{"id":538690,"date":"2020-05-14T19:04:00","date_gmt":"2020-05-14T19:04:00","guid":{"rendered":"https:\/\/www.capgemini.com\/gb-en\/?post_type=press-release&#038;p=538690"},"modified":"2025-03-10T10:09:18","modified_gmt":"2025-03-10T10:09:18","slug":"online-retail-sales-soar-to-ten-year-high-as-covid-19-redefines-shopping-behaviours","status":"publish","type":"press-release","link":"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/online-retail-sales-soar-to-ten-year-high-as-covid-19-redefines-shopping-behaviours\/","title":{"rendered":"Online retail sales soar to ten-year high as COVID-19 redefines shopping behaviours"},"content":{"rendered":"\t\t<div class=\"wp-block-cg-blocks-hero-press-release\">\n\t\t\t<header class=\"header-hero-press-release\" role=\"main\" id=\"main-content-press-release\">\n\t\t\t\t<div class=\"container\">\n\t\t\t\t\t<div class=\"hero-press-release\">\n\t\t\t\t\t\t<div class=\"hero-press-release-content-wrapper\">\n\t\t\t\t\t\t\t<div class=\"row\">\n\t\t\t\t\t\t\t\t<div class=\"col-12\">\n\t\t\t\t\t\t\t\t\t<div class=\"header-title\">\n\t\t\t\t\t\t\t\t\t\t<h1>\n\t\t\t\t\t\t\t\t\t\t\tOnline retail sales soar to ten-year high as COVID-19 redefines shopping behaviours\t\t\t\t\t\t\t\t\t\t<\/h1>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"header-description\">\n\t\t\t\t\t\t\t\t\t\t<p><\/p>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"header-date\">\n\t\t\t\t\t\t\t\t\t\t<span>May 14, 2020<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/header>\n\t\t<\/div>\n\t\t\n\n\n<section class=\"wp-block-cg-blocks-intro-para undefined section section--intro\"><div class=\"intro-para\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/online-retail-sales-soar-to-ten-year-high-as-covid-19-redefines-shopping-behaviours\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/online-retail-sales-soar-to-ten-year-high-as-covid-19-redefines-shopping-behaviours\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><h2 class=\"intro-para-title\"><strong>LONDON UK \u2013 April 14, 2020:<\/strong> Following the UK\u2019s first full month under lockdown, April\u2019s online retail sales results have signalled a seismic shift in purchasing patterns. As COVID-19 shut brick and mortar stores up and down the county, online sales growth surged to a 10-year high \u2013 up an astonishing +23.8% Year-on-Year (YoY). That\u2019s according to the latest <em>IMRG Capgemini Online Retail Index<\/em>, which tracks the online sales performance of over 200 retailers.<\/h2><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-11 col-lg-10 offset-md-1 offset-lg-1\"><div class=\"article-text article-quote-text\">\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Taking a closer look at the results, the spike in sales was overwhelmingly driven by multichannel retailers. After recording higher growth than their online only counterparts for the first time in a year in March, multichannel retailers continue to benefit from consumers\u2019 changing shopping habits \u2013 with sales&nbsp; up +35% versus online only retailers\u2019 more modest rise of +8.3%.<\/p>\n<\/blockquote>\n\n\n\n<p>Breaking down the figures at a category level, the unusually hot April weather (combined with lockdown) triggered a monumental rise in gardening sales. Building upon March\u2019s +94.4% YoY growth, this month\u2019s sales were up an unprecedented +288%. Meanwhile, electrical sales sparked an equally impressive +102% growth \u2013 likely indicative of remote working requirements and demand for at-home entertainment as consumers navigate home isolation. Further to their success in February and March, health &amp; beauty sales also continued to soar \u2013 with growth of +82%.<\/p>\n\n\n\n<p>Unfortunately, the story was not quite so positive for the clothing sector, with felt the impact of COVID-19 on its monthly sales for the second time as they sunk -23.8% from April 2019. Within this, footwear and menswear sales were particularly poor, down -31.1% and -33.5% respectively.<\/p>\n\n\n\n<p><strong>Andy Mulcahy, strategy and insight director, IMRG<\/strong>: <em>\u201cApril\u2019s data shows that demand is following a very logical pattern \u2013 with stores closed, people who would usually shop in physical locations have no choice but to switch online. Hence it is the multichannel retailers who are securing the very strong growth at the moment, though whether it will be enough to entirely offset the loss of sales from those stores seems unlikely. This is only true for some categories though; even with stores closed, online growth for multichannel clothing retailers is still down -17.5%. The demand just isn\u2019t there at the moment.<\/em><\/p>\n\n\n\n<p><em>\u201cWhen that demand will return is a big question for clothing retailers. If they reopen stores \u2013 and take their staff out of furlough, bringing all the costs back into the business \u2013 but their customers don\u2019t return quickly, there could be a very difficult period coming indeed.\u201d<\/em><\/p>\n\n\n\n<p><strong>Lucy Gibbs, managing consultant \u2013 Retail Insight,<\/strong> <strong>Capgemini<\/strong>: <em>\u201cCOVID-19 has reshaped consumer spending patterns and shopping habits, which has been accentuated by the significant online growth in April.&nbsp; Customers to become accustomed to turning to online to fulfil shopping needs as non-essential retailers remained closed.&nbsp; However, despite the positive figures, it begs the question whether this is enough to make up for the full impact of COVID-19 performance particularly for the fashion sector which is still losing out as customers are purchasing for new environments rather than fashion.<\/em><\/p>\n\n\n\n<p><em>\u201cWe are also starting to see a differential by retail tier, with mid-market losing out to budget retailers, a trend to watch as consumers seek value for money in uncertainty, however, on the other hand we are likely to see consumers looking for brand trust and quality. This can result in a squeeze in the mid-tier where appealing to both needs has been traditionally harder to balance. Retailers will need to listen to their customers, and find new ways to become increasingly transparent, flexible and innovative in order to navigate the rocky and uncertain road ahead.\u201d<\/em><\/p>\n\n\n\n<p><strong>-ENDS-<\/strong><\/p>\n\n\n\n<p><strong>About the \u2018IMRG Capgemini Online Retail Index\u2019<\/strong><\/p>\n\n\n\n<p>The IMRG Capgemini Online Retail Index, which was started in April 2000, tracks \u2018online sales\u2019, which we define as \u2018transactions completed fully, including payment, via interactive channels\u2019 from any location, including in-store.<\/p>\n\n\n\n<p><em>*Please note from January 2020 the Index no longer includes data from the travel sector<\/em><\/p>\n\n\n\n<p><strong>About IMRG<\/strong><\/p>\n\n\n\n<p>For over 20 years, IMRG (Interactive Media in Retail Group) has been the voice of e-retail in the UK. We are a membership community comprising businesses of all sizes \u2013 multichannel and pureplay, SME and multinational, and solution providers to industry. We support our members through a range of activities \u2013 including market tracking and insight, benchmarking and best practice sharing. Our indexes provide in-depth intelligence on online sales, mobile sales, delivery trends and over 40 additional KPIs. Our goal is to ensure our members have the information and resources they need to succeed in rapidly-evolving markets \u2013 both domestically and internationally. <a href=\"http:\/\/www.imrg.org\/\">www.imrg.org<\/a><\/p>\n\n\n\n<p><strong>About Capgemini<\/strong><\/p>\n\n\n\n<p>A global leader in consulting, technology services and digital transformation, Capgemini is at the forefront of innovation to address the entire breadth of clients\u2019 opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. It is a multicultural company of over 200,000 team members in more than 40&nbsp;countries. 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