Football merch, clothes and TVs: Modest May for UK online retailers as summer holidays and Euro 2024 loom large

New research from Adobe, powered by Adobe Analytics, reveals modest growth in online spending in May, buoyed by increased spending on England team merchandise, TVs and clothing as UK consumers prepared for the summer holidays and Euro 2024.

In total, Brits spent £7.9 billion online in May 2024, a 2.1% increase on the £7.8 billion spent in same period last year.

With the UEFA European Championships kicking off this week, online sales of England football shirts and other team merchandise increased 115% in May compared with normal levels, as fans prepare to support the national team, with spending accelerating towards the end of the month.

Adobe Analytics also recorded an uplift of 14.4% in spending on TVs compared with normal levels as armchair fans prepare to tune in at home. During the first week of June, spending on England team merchandise was up 639% compared with normal levels and rose 144.49% from the week prior.

After rising 9.8% in the year to April, online grocery prices settled in May, rising by 1.7% YoY. In contrast, the apparel and electronics categories continued to experience heavy discounting, resulting in a -5.7% overall change in the online rate of inflation.

May was the warmest on record, and consumers responded by upping their online spending on clothing and apparel in the run up to summer by 11.9% compared with the same period last year. Online clothing prices fell by 7% YoY, the tenth consecutive month of YoY price decreases.

Spending on home and garden items also increased by 9.4% YoY, with BBQs and charcoal in particular seeing a combined 136% uptick in sales compared to normal levels.

As in apparel, prices in the home and garden category continued to be discounted, falling 1.2% in May. Online prices for home and garden items have fallen on an annual basis every month since December 2019 as retailers seek to stimulate demand in the category.

BNPL

UK consumers also used buy now pay later services to finance £1.22 billion worth of purchases in May, a 4.6% YoY decrease on the £1.28 billion spent in May 2023, representing 15.4% of total online spend.

This is the first time that the amount spent by consumers through BNPL services has fallen on an annual basis since Adobe started tracking its use in January 2022, suggesting an improving picture for people’s personal finances.

“The sluggish growth in online spending since the start of the year continued into May, with just a 2.1% year-on-year increase,” says Vivek Pandya, Lead Analyst, Adobe Digital Insights at Adobe.

“One particular bright spot in May’s data came as football fans ready themselves for a summer of sport, driving a significant uptick in sales of England football merchandise and TVs as they prepare to support the national team in the UEFA European Championships.”

“Retailers will be backing the team to go all the way and ride the wave of optimism that has in the past translated into greater consumer confidence and a big boost in spending that would get the sector back alive and kicking.”