UK online retail growth drops away as coronavirus lockdown eases

Despite the easing of coronavirus restrictions, the UK online retail space grew in April, with sales rising 10.2% YoY, according to research by IMRG and Capgemini.

Some impact of non-essential physical retailers reopening was, however, evident in the month on month numbers, which were down 12%.

The results are below the three, six and 12 rolling averages of 50.4%, 50.1% and 49.8%.

Andy Mulcahy, Strategy and Insight Director, IMRG, says: “What impact did the reopening of the high street have on retail? Several large retailers I have spoken to say the first week was amongst the strongest they have seen across online and retail platforms; one even recorded their biggest day ever overall.”

“While online growth might have dropped away from +70-80% between January and March to +10% in April, this is largely as growth rates are now comparing with pandemic period rates from 2020, which were so strong that it is hard to build upon that performance.”

He concludes: “In January, we mapped out how growth could look if things go relatively well for online, relatively badly, and somewhere in the middle.”

“In April, retail generally seems to have done well, and the rate of online growth is currently somewhere between average and good in that forecast. As people get more options for spending their money in later May and into June, that will provide a sterner test.”