Mention Me flags mixed e-commerce results as non-essential retail reopens

One month on from non-essential retail reopening in England, data from Mention Me shows that online sales declined by 6% against the previous month.

Sales typically decline by just 3% at this time of year, indicating that customers are diversifying their spending.

Mention Me analysed online sales and referrals from over 320 brands across six retail sectors.

As the UK enters the next phase of easing lockdown, we've analysed how consumers shopped last quarter – and predict how they'll shop over the coming months.https://t.co/vSPV7vi0nF
— Mention Me (@mentionmeshare) May 17, 2021

After a strong Q1 performance, the home and garden sector saw the biggest month on month fall in online sales at 11%.

This is predominantly due to coronavirus restrictions easing, with people instead embracing the opportunity to socialise outdoors at pubs and restaurants, and return to the office.

Meanwhile, more social events on the horizon meant the health and beauty sectors remained close to expected levels.

In previous years fashion sales have dropped -4% during this period; this year they fell -5%. Health and beauty would typically see an increase of +4% for this period, with +2% reported for 2021. The gifts and occasions sector also remained steady.

Online orders for food and drink brands have remained strong (dropping just 3% month on month) even as outside service at hospitality venues has resumed.

Referrals for the sector remain the same as last month, suggesting consumers are continuing to both buy from and recommend their favourite food and drink brands to friends.

Mention Me’s Head of Retail Insights, Simon Dring, says: “While uncertainty will continue to dominate over the coming months, in-store retailers will be breathing a sigh of relief that consumers are still interested in what they have to offer.”

“Early signs look promising, but to sustain this, bricks and mortar retailers must find ways to differentiate from their online competitors. If they can’t, they risk losing business once the novelty of shopping in-store fades.”

He adds: “Whether online or offline, the only way to keep new or returning customers is through brand loyalty, targeted engagement and customer retention strategies.”

“That’s why we’ve seen more and more retailers focus on connecting with and nurturing relationships with their target customers over the past year.”

“The shift online was happening long before the pandemic and I don’t think the tide has turned again.”

“Success for these retailers lies in combining on and offline channels to create smooth omnichannel experiences. Meanwhile, pureplay brands must act now to convert people from first time purchasers and "online curious" into loyal customers.”