Online sales saw spike towards end of October amid Lockdown 2 rumours

Overall online retail sales growth in October was a modest +35.7% year-on-year (YoY) compared to September’s +42%, but the downward trend in growth reversed throughout the month with sales climbing up to +43.4% by the final week - commencing 26 October - as rumours of a second lockdown began to gain strength.

According to the latest data from IMRG Capgemini Online Retail Index, which tracks the online sales performance of over 200 retailers, the growth in spend between the third and fourth weeks of October soared past the 2019 figures (1.3% and 4.8% YoY), surging from +32.7% to +43.4% (YoY) respectively.

At a category level, this pattern was echoed in clothing sales, which recorded falling then rising growth of +6.6% (YoY). October’s final week then saw online sales surge to a staggering +17.1% (YoY) – the category’s strongest performance since COVID-19 hit.

Footwear also finally recorded positive sales growth in the last week of the month, with spend rising by +2.7% (YoY). Meanwhile, perhaps in a nod to seasonal change and the demand for outdoor heaters, garden sales continued to soar, with growth of +390.9% (YoY) for the month.

Mirroring the trend in sales figures since lockdown restrictions were put in place, multichannel retailers maintained their advantage over their online only counterparts, recording growth of +62.7% versus +19.6%.

Lucy Gibbs, managing consultant at Retail Insight, Capgemini, said: “October marks another turning point in the turbulent retail calendar this year with the final week jumping up 43% in anticipation of new lockdown measures. This time, the clothing category appears to be following the trend, also seeing the high weekly year-on-year uplift in the final week of October, with seasonal weather combined with outdoor meeting rules boosting demand.

“Although we have seen record breaking online growth over the summer months, order volumes were still well below that seen by recent years during peak events such as Black Friday.

“As non-essential retailers had to close their doors for the second time, the stakes will be higher. An uplift on online sales orders in double digits on top peak demand will impact already stretched supply channels. Retailers can capitalise on learnings so far to reduce the pressure and reassure customers, however a likely differentiator for success will be determined by service levels over the festive period.”