According to data from e-commerce marketing platform Omnisend, retailers across the UK saw a 40% increase in product sales during the summer of 2024. This rise came after a busy sales season in June, July and August, with 237,000 additional sales recorded compared to the same period in 2023.
Total revenues for online retailers using Omnisend rose to £40m, up from £33.8m the previous year. However, the data suggests that this revenue increase was not matched by a rise in product sales, suggesting retailers were cutting prices to attract more customers. The increased sales were supported by a 140% increase in people opening summer sales emails, as consumers eagerly sought out deals.
The Office for National Statistics reported steady growth in UK retail sales, driven by factors such as easing inflation and rising consumer confidence as disposable incomes improved.
Greg Zakovich, senior e-commerce expert at Omnisind, highlighted the significance of this trend: “The cost of living challenges remain for many shoppers, and this is reflected in how people interact with retailers. The hunt for real deals is turning into a clear increase in sales. A 40% increase in product sales is a shot of adrenaline for the retail industry after a lackluster summer last year.”
Zakovich warned that the next few months will be critical for retailers as they prepare for major shopping events such as Black Friday and Cyber Monday. While these events are increasingly popular, he noted that higher energy prices and reduced fuel allowances in the winter could make some consumers, especially retirees, more cautious about spending during the winter shopping season.
“Retailers need to be competitive on price, especially when competing with e-commerce giants like Amazon, which typically dominate these events. Consumers are now familiar with the marketing around these events and the fact that sales periods often offer small savings,” he added.
Some retailers are also opting for more consistent, affordable pricing strategies rather than relying on big sales events, which Zakowicz believes could become a more popular approach in the coming months as smaller retailers face economic challenges.