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UK Retailers Enjoy 40% Boost in Summer Sales as Price Cuts Drive Demand

September 18, 2024

Retailers are becoming more optimistic about their near-term trading outlook after a “challenging winter”.

Retailers across the UK experienced a 40% increase in product sales over the summer of 2024, according to data from e-commerce marketing platform Omnisend. The boost came after a busy sales season in June, July, and August, with 237,000 more sales recorded compared to the same period in 2023.

Online retailers using Omnisend saw their total revenue climb to £40 million, up from £33.8 million the previous year. However, the data suggests that this revenue increase did not match the surge in product sales, indicating that retailers slashed prices to attract more customers. The increased sales were supported by a 140% rise in the number of people opening summer sales emails, as consumers eagerly sought out bargains.

The Office for National Statistics (ONS) has reported steady growth in UK retail sales, driven by factors such as easing inflation and growing consumer confidence as disposable income improves.

Greg Zakowicz, senior e-commerce expert at Omnisend, highlighted the significance of this trend: “Cost of living challenges remain for many shoppers, and this is reflected in how people are interacting with retailers. The search for genuine bargains is converting to a clear uplift in sales. A 40% increase in product sales is a shot of adrenaline for the retail industry after a lacklustre summer last year.”

Zakowicz warned that the next few months would be critical for retailers as they prepare for major shopping events like Black Friday and Cyber Monday. While these events have grown in popularity, he noted that rising energy prices and cuts to winter fuel allowances could make some consumers, particularly pensioners, more cautious about spending during the winter shopping season.

He added, “Retailers must be competitive on pricing, especially when competing with e-commerce giants like Amazon, which typically dominate these events. Consumers are now wise to the marketing around these events and the reality that sales periods often offer minimal savings.”

Some retailers are also opting for more consistent, affordable pricing strategies rather than relying on big sales events, which Zakowicz believes may become a more popular approach in the coming months as smaller retailers face economic challenges.