E-commerce sales sparkled as canny shoppers snapped up gold jewellery in September
Retail sales volumes grew 0.5% in September, while online sales values soared by 1.4% as online jewellers reported a strong demand for gold. The home delivery expert Parcelhero says canny Brits may have spent their money on a safe investment during a time of market turbulence.
The Office for National Statistics (ONS) retail sales estimates for September reveal sales volumes climbed 0.5% over August and 1.5% year-on-year (YoY). In the third quarter of this year (Q3 – July-September) sales rose by 0.9%. As a result, sales volumes hit their highest level since 2022, says the home delivery expert Parcelhero.
Parcelhero’s head of consumer research, David Jinks MILT, says: ‘While good weather boosted clothing sales by 0.1% in September and 4.4% overall in Q3, it was online sales that really shone.
‘In this case, all that glittered really was gold. Sales volumes for non-store retail (the sector which includes online sales) rose by 1.5% in September and 3.8% in Q3, hitting their highest level since February 2022. A notable contributor to this rise, says the ONS, was online jewellers reporting a strong demand for gold.
‘September, and indeed the whole summer, has been notable for market turbulence. As a result, the price of gold soared, reaching a record high of more than $4,000 (£2,985) an ounce earlier this month, as investors looked for safe places to put their money. It’s likely that strong gold jewellery sales from online retailers could be a result of this surge in the value of gold, as online shoppers jumped in on the action.
‘Today (24 October) gold prices have dropped back from the month’s highest results. However, that doesn’t mean online shoppers have been investing in fool’s gold. Such is the volatility of markets that it is still seen as a safe haven and at least shoppers have a beautiful product to admire.
‘The spike in spending on gold jewellery helped the amount spent online – known as online spending values – rise by 1.4% in September over August and by 5.6% YoY. This was the eighth consecutive period online sales have climbed. For the whole of Q3 online sales were up 3.5% on the preceding quarter.
‘As a result of all this online activity, the total spend (the sum of in-store and online sales) rose by 0.7% in September. As a result, the proportion of sales made online increased from 27.8% in August to 28% in September.
‘Retailers, whether on the High Street or online, will be hoping these figures mean the omens are good for Christmas sales this year. Parcelhero is forecasting a 3.7% online sales uplift during the holiday season – providing November’s Budget doesn’t damage consumer confidence.
‘Ultimately, it’s those stores with a combined High Street and online offering that are most protected against inflation pressures, Budgets and unexpected events. Parcelhero’s influential report “2030: Death of the High Street” has been discussed in Parliament. It reveals that retailers must develop an omnichannel approach, embracing both online and physical store sales. Read the full report at: https://www.parcelhero.com/content/downloads/pdfs/high-street/deathofthehighstreetreport.pdf