Hot weather and new school year see UK shoppers spend £9.43 billion online in August

New data from the Adobe Digital Economy Index, powered by Adobe Analytics, shows that a total of £9.43 billion was spent online in the UK in August (down just 1.3% year-on-year, and down 3.5% compared with July), with shoppers stocking up on school uniforms and barbecues before the start of the new school year and to prepare for scorching early September weather.

After peaking in July at £9.75 billion, online spending figures for August remained comfortably above £9 billion, pointing to a return to consumer confidence and spending power after a slow start to the year. Since May, online spend has closely tracked 2022 levels.

Online inflation – a leading indicator of overall inflation – saw prices fall by 6.2%, when compared to August 2022, representing the biggest year-over-year fall in inflation since March 2022.

Prices were also 0.7% cheaper when compared with July 2023, and are dragged down by large price drops in non-essential goods. Online grocery inflation slowed, with prices rising by just 3.63% compared with August 2022.

Consumer spending is, however, increasingly supported by buy now pay later services, with a 2023 high of £1.57 billion spent using the services in August, accounting for 16.7% of total online spending for the month.

After the sixth wettest July on record, consumers sought to make the most of the early September heatwave by stocking up on barbecues and sun cream.

Barbecue buying peaked on Sunday 3rd September, just before temperatures soared to record-breaking levels. Shoppers spent more on barbecues in a single day than at any other point during the school summer holidays, 105% higher than August’s daily average sales and 67% above July’s daily average sales.

Online sales of sun cream and cosmetics with SPF also saw a late-summer boost, with figures from the last two weeks of August showing a 7% increase over the daily average in July, contrasting with figures from 2022 which saw sales decrease by 30% over the same period.

The data also showed a 330% spike on August 29th for online spending on travel size cosmetics and personal care products over average daily levels.

Parents left it late and opted for online shopping to prepare for the start of the school year rather than heading in-store. Online sales of school uniforms saw a late boost with spending up 48% in the last week of August and up 76% in the first week of September, compared with the same period in 2022.