Visa Europe’s UK Consumer Spending Index for April has shown the biggest spike in online consumer spending for some 16 months
Visa Europe’s UK Consumer Spending Index for April has shown the biggest spike in online consumer spending for some 16 months. Before April this year, it was December 2014 that last saw such a large spike as wintry weather took its toll on the spending of high street shoppers.
You may wonder why something of this nature is featuring on our logistics and fulfilment blog, but we think this news is definitely relevant. With the majority of our customers operating their own ecommerce websites and selling through various different marketplaces like eBay and amazon, then the news of online spending growing at the fastest rate for over a year, holds fair importance.
Minister of State for the Digital Economy, Ed Vaizey, dubbed the figures a reflection of Britain’s evermore tech-savvy consumers, and encouraged businesses to make the most of a “more digital Britain.”
The continued rise in ecommerce sales should come as no surprise given that the UK is one of the most developed digital economies in the world and a nation viewed as early adaptors of technology.
Visa’s figures show online spending growth hit a 16-month high in April, up 8.4% on the same period last year, whilst face-to-face spending remained relatively flat at 0.2%.
The UK and Ireland Managing Director of Visa Europe said that “growth in consumables remains evident, but consumer spending is increasingly focused on the experience economy. Eating out, booking holidays and discovering new experiences are all driving spending growth”.
“The average British person spends around £1,500 online each year,” the Minister of State for the Digital Economy added. He also said that he wants all UK businesses to be taking advantage of this and that they should make the most of the opportunity that the internet offers. With businesses embracing online technology, Britain is becoming increasingly stronger and more digitally minded.
Within the Consumer Spending Index for April, the only sector to report reduced expenditure was clothing and footwear, down 2.8% year-on-year, where unseasonal weather was attributed to have had an adverse effect on sales in these sectors. It can be safely assumed that the wintry weather throughout April played a big part on the overall sales for clothing and footwear, as high street chains were not reaping any sort of benefit.
Overall however, the most notable point to take away from the Index for April is that general ecommerce sales are growing, and fast. This latest data is certainly no surprise to the team here at 3P Logistics as our throughput in fulfilment of ecommerce orders continues to increase month on month. We foresee overall ecommerce sales continue to outstrip forecasts for the remainder of 2016 and beyond whilst buyer habits will continue to swing towards m-commerce (shopping using mobile devices in general)