Online retail sales are rising sharply in the United Kingdom. According to the country’s Office for National Statistics (ONS), online retail sales values were 11.7 percent higher in the second quarter than a year earlier. In June alone, they increased by 14.4 percent year-on-year. The online share of retail sales reached its highest level since April 2021.
Strong online growth is also boosting overall retail performance in the United Kingdom. Total retail sales volumes increased by 0.6 percent in the second quarter and by 1.0 percent in June, according to the ONS. While the office does not publish absolute sales values, its estimated growth rates provide a clear indication of market trends.
Online retail sales in the United Kingdom
“Retailers suggested that sales promotions and the warm weather increased sales volumes for non-store and clothing retailers”, the ONS said in its latest report. Outdoor products, sports merchandise, as well as items such as fans and air conditioners, proved especially popular in June.
The online share nears 30%
Online retail accounts for a growing share of retail sales in the United Kingdom. In June, the online share rose to 29.4 percent, the highest level since April 2021, when the COVID-19 pandemic restrictions were still having a major impact on shopping behavior.
Comeback
Online retail in the United Kingdom endured a prolonged downturn. From the spring of 2021 onwards, online retail sales values declined month after month for years in a row according to the IMRG Online Retail Index. After Brexit, British online retailers did not benefit the cross-border ecommerce momentum seen in continental Europe.
Double-digit year-on-year increases
The outlook has now brightened for British online retailers. The market has returned to growth, with online retail sales posting strong double-digit year-on-year increases.
Amazon dominates
British consumers rely heavily on online marketplaces. Amazon remains by far the largest ecommerce player in the United Kingdom. Last year, the company’s local revenue increased by 14.2 percent to 43.2 billion dollars. According to Amazon, it invested more than 17 billion euros in the country last year.
