The online retail market saw a decline in revenue for the 26th consecutive month in June, according to the IMRG Online Retail Index. The total online market revenue increased by 1.4% month-on-month, which is in line with the growth trend for this time of year.

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The traffic metric, after seven months of decline, experienced positive growth in June, at 1.9% year-on-year. Month-on-month, traffic increased by 5.4% from May, likely due to events such as Father’s Day and Pride.

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The warm weather in June, the hottest June on record, had a positive impact on some categories such as garden (+10% YoY) and clothing (-2.3% YoY). Footwear also saw positive growth, at +0.7% YoY.

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Small appliances, however, experienced a decrease in traffic throughout 2023 relative to 2022, but still saw a year-on-year revenue growth of 47.1% in June 2023. This suggests that customers know what type of product they want and are less likely to browse around.

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Andy Mulcahy, strategy and insight director at IMRG, commented: “Following the pandemic boom, when lockdowns drove huge surges in online purchases and it appeared possible that its penetration into retail overall had rocketed forward several years, the market has actually been in decline ever since. However, while negative growth has become normalised, the trend lines are heading back toward positive growth again, likely in time for the most important time of the year for retail – Black Friday and Christmas. Provided, of course, the looming mortgage crisis doesn’t blow everything off target again.”

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The online retail market has been in decline since the pandemic boom, but there is hope that the trend lines are heading back toward positive growth in time for the holiday season. However, the potential mortgage crisis could have a significant impact on the market.

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Sources: https://www.techdigest.tv/2023/07/ecommerce-growth-declines-for-26th-months-in-a-row.html