The online shopping setback – Digital sales at their lowest levels since before the pandemic

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Whilst the overall retail landscape is facing challenges, particularly due to the cost-of-living squeeze, the online sector has been considered a beacon of hope amidst the turmoil. However, May’s dip in online sales raises important considerations, especially as major brands like ASOS are being approached for takeover.

In the online fashion industry in particular, discretionary spending is likely to be further curtailed, leading to a higher level of impact on brands like ASOS. However, it’s important to note that consumers are showing a preference for budget ranges and own-label lines, posing an opportunity for retailers to adapt their offerings to cater to their customers’ current budget constraints.

It’s also unsurprising that the homeware market was the worst performing sector last month, with total like-for-like sales falling by 9.2%. DIY retailers face further slowdowns as mortgage costs and the overall cost of living continue to increase. These retailers need to provide value-driven solutions and enhance their online platforms to serve customers who may be more inclined to undertake home improvement projects themselves.