Mention Me research flags permanent shift to online first retail

The coronavirus pandemic has cemented the shift to e-commerce, with Q2 2021 online sales up +64% compared to the same time period in 2019, according to research from Mention Me.

The referral marketing platform’s Retail Insights team compared data trends since 2019 across beauty, home and garden, fashion, and food and drink to identify long-term trends in the market, beyond the fluctuations caused by changing lockdowns.

While Q2 sales in 2021 are down -15% compared to the extraordinary peaks seen in Q2 2020, prompted by consumers panic buying, the data shows that online shopping has increased significantly compared to 2019. Across the four sectors analysed, online sales have increased +64%.

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The beauty sector has performed best over this time period, with online orders up +78% from Q2 2019.

This is closely followed by fashion (+58%) and home and garden (+67%). Despite the re-opening of physical retail, the four sectors are only tracking 2% down from where the research team would expect them to be at this time of year.

The online food and drink sector has significantly grown during the pandemic, as consumers switched their buying habits and tried out new brands.

As restaurants have reopened, people have diversified their spending, with Q2 2021 sales down 11% compared to Q2 2020. However, the research shows consumers continue to buy more food and drink products online, with sales up 60% compared to Q2 2019.

Simon Dring, Head of Retail Insights at Mention Me, says: “Monthly, or even weekly, volatility as a result of the pandemic has distracted from the long-term trends shaping the retail industry. When you take a step back, it’s clear we’re seeing a permanent shift to online first retail.”