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Retail sales in Q2 2021: Pandemic shifts and reversals

5 August 2021
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  • The three lockdowns since Q1 2020 shifted the sales of ‘non-essential’ stores (e.g. clothes) to online, with deconfinement releasing the oxygen of pent-up demand to the high street, eroding online’s share
  • For vendors of ‘essential’ goods (e.g. food and drink), which stayed open, Work-From-Home (WFH) shifted a large portion of spend to in-home purchases, with both offline and online spend remaining elevated in Q2
  • The share of online in retail sales (excluding fuels) dropped from its peak of 34.7% in Q1 2021, when the UK was in its third lockdown, to 27.6% in Q2. This is still up 10 ppts from 18.7% in Q2 2019, evidence of a new post-pandemic normal, as mobility to retail and recreation destinations remains impaired

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  • Ecommerce forecasts 2021: Pandemic shifts remain for now

    29 March 2021

    Goods ecommerce accelerated in 2020 by four years above trend to reach 28% of retail sales (excl. fuels) from 19% in 2019. We anticipate that ecommerce in 2021 will remain in the same share range of 27-29%. 

    Food and drink grew faster than any online category in 2020, doubling to over 10% of associated sales. Aside from food and drink, the agony of zero sales on the shuttered high street continued, with over half of all sales being online in 2020, likely persisting in Q1 2021.

    Offline retailing will recover due to deconfinement and the share of ecommerce will edge down in Q2 2021 and thereafter, but these new shopping habits will be sticky and anchored by persistent work-from-home, driving all retailers that are left standing to massively adopt online channels and associated advertising media.

    Access report

  • Surging online retail: Record growth during lockdown

    2 September 2020

    Over Q2, the value of online sales (excl. fuel) grew by 55%, whilst offline sales (excl. fuel) declined by 22%. Three months of lockdown has accelerated ecommerce by four years and households will spend more than ever before online, post-lockdown.

    The rapid shift to ecommerce poses lofty challenges to UK retailers who have historically been timid in their approach to ecommerce. Integration between sales channels will become more important than ever before, but very few have managed to perfect this approach.

    As more retail activity takes place online, ad products from the likes of Google, Amazon and Facebook stand to benefit greatly, pulling spend from other ad and marketing budgets that were aimed at driving in-store behaviours.

     

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  • Pandemic economy: The uncertain road ahead

    15 June 2020

    In April, the first full month of lockdown, UK’s GDP fell by -20.4% month-on-month, the steepest decline on record, with further reduction expected in May. On 15 June, some non-essential premises re-open, but activity for the rest of the year will be depressed by social distancing—the UK’s recession in 2020 is certain to be the steepest on record

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