Online sales surge to highest ever levels in January

The amount spent via digital channels made up 35.2% of overall retail spending in January, according to the Office for National Statistics (ONS). That compared to 19.5% a year ago and 29.6% during December 2020.

Retailers across all sectors reported a month-on-month uplift in the proportion of sales they made online during January.

The ONS said 12.2% of all grocery sales were made online during the month, the highest level it has recorded.

Despite the popularity of ecommerce, total retail sales fell 7.2% year on year as the industry continued to suffer from the impact of store closures during the coronavirus pandemic.

Excluding fuel, sales were down 4.3% compared to January 2020.

Sales volumes dropped 5.9% year on year including fuel and 3.8% excluding fuel.

Compared to December 2020, the amount spent in retail in January tumbled 7.8% including fuel and 8.3% excluding fuel.

Sales volumes also fell sharply month on month, declining 8.2% including fuel and 8.8% excluding fuel.

Retail Economics chief executive Richard Lim said: “The pandemic has driven a step-change in online shopping and a new wave of digital shoppers have broken down the initial barriers of setting up online accounts, entering payment details and overcoming issues of trust.

“Consumers now seamlessly transition to lockdown shopping habits, switching to online channels they discovered during previous lockdowns. It’s inevitable that some of these behaviours will become a permanent feature of the industry as consumers embrace a new way to shop and the industry boosts online capacity.”