Finance Advice Column Online sales S
hoppers defied the cost of living crisis to hit online clothes shops at record levels through the first half of 2023 as, according to our analysis of the ONS’ retail sales data. At Reconomy, we’re an innovative, tech-led provider of services to enable the circular economy, with the purpose of creating a truly sustainable world by conserving finite resources. Enabling businesses around the world to improve their ESG outcomes, the Reconomy delivers value through its unique set of integrated capabilities - Recycle, Comply and Re-use. Reconomy serves businesses of all sizes in the following sectors: retail, hospitality, leisure, manufacturing, facilities management, transport and logistics, construction, house building and infrastructure. The data revealed that the value of average weekly online sales at textile, clothing and footwear stores reached a record £1.71 billion in H1 2023. It marked an increase from £1.58 billion in the second half of 2022 and surpassed the previous all-time high average weekly sales of £1.67 billion in H1 2021 following the surge of online shopping driven by the pandemic.
defy cost of living crisis
Shoppers defied the cost of living crisis to hit online clothes shops at record levels through the first half of 2023 as, according to analysis of the ONS’ retail sales data from global circularity experts Reconomy. Claire Webb, managing director of Advanced Supply Chain at Reconomy, reports…
Further analysis of the ONS’ figures also revealed that over 11p of every £1 spent online (11.6%) was at textile, clothing and footwear stores demonstrating the importance the sector as a driver of e-commerce growth.
The steady growth of internet shopping was turbo-charged through the pandemic as the high street was forced to roll down its shutters and serve its customers online leading to a surge in average weekly sales. These trends now look to have become embedded in shopper behaviour as despite the cost of living crisis squeezing budgets, average weekly sales accelerate to their highest ever level through the first six months of the year.
The shift to online poses challenges for fashion for brands and changes the cost of ownership, shifting price points and pressures from bricks, mortar and warehouses to an increasingly fluid supply chain spanning global export centres and deployment centres. This transition means retailers and fashion brands increasingly need to demonstrate the sustainability of their supply chains and materials. Clothes need to be transported efficiently to maximise the efficiency of logistics,
returns are processed sustainably and textiles are either recycled or reused. With customers becoming more and more conscious over where and how they shop, ESG is core to fashion brands’ commercial aims.
The table shows the month-on-month and month-on-year (annual) growth rates for the amount spent online by value, and the proportion of total retail sales value that was made online by sector. The percentage weights show where money is spent online. For example, 7 pence in every pound spent online was spent in department stores in 2022.
Online spending values fell by 0.5% in June 2023 because of monthly falls in clothing and food stores as they returned to previous levels following increases last month. However, note the growth in the textile, clothing and footwear category. Overall proportion of online sales fell to 26.0% in June 2023 from 26.5% in May 2023 and has remained broadly consistent at around 26% since May 2022. The proportion of retail sales taking place online remains above the pre-coronavirus (Covid-19) pandemic levels (19.7% in February 2020).
www.printwearandpromotion.co.uk
September 2023 | 63 |
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