UK online retail sales fell 12% in December! Demand for appliances, home and garden categories slowed!

It is learned that according to foreign media reports, despite the boost from the Christmas shopping season and the Qatar World Cup, British consumer spending in December still lagged behind inflation.

Data from Barclays Bank showed that in December 2022, British credit and debit card spending increased by 4.4% from the same period last year, but this was far lower than the 10.7% increase in consumer prices in November.

Esme Harwood, director of Barclays, said: "Pubs and clubs benefited from Christmas parties and fans watching the World Cup. However, it is worth noting that the figures for December 2022 look more positive compared to the same period in 2021. Last year, the epidemic kept Britons away from high streets and entertainment venues."

On the other hand, according to the latest IMRG Capgemin Online Retail Index, online retail sales in the UK fell 12% year-on-year in December, the lowest since March. Online retail sales for the whole year fell 10.5% year-on-year, the first negative growth in history.

Online spending on Black Friday 2022 was almost the same as last year, slightly better than expected but below the average for the first 10 months. Sales fell 7.3% on the afternoon of November 27 compared to the same period last year. December 18 also performed poorly, with sales falling -4.7% due to a strike by Royal Mail workers.

In December, sales of clothing (+6.1%) and health and beauty products (+11.8%) increased. In terms of breakdown, underwear increased by 0.9% year-on-year, hair care products increased by 9.1% year-on-year, and cosmetics increased by 11.8% year-on-year. On the contrary, sales of electrical appliances (-down 18.1%) and home and garden (-17.6%) fell sharply.

The average online order value in December was £134, up from £121 in the same period last year, driven by inflation and price increases. In addition, the conversion rate (the percentage of website visitors who complete a purchase) for UK online shopping sites was 20% lower than the same period last year.

Andy Mulcahy, director of strategy and insight at IMRG, said: "2022 is indeed a bad year for the retail industry. But it is worth noting that even in a challenging environment, traffic to retail websites continues to grow. Despite the recession, retailers are still in a good position, so people still rely on online shopping. In 2023, retailers will continue to face severe challenges, especially in the first half of the year.

Editor ✎ Nicole/

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