Early signs of Brexit vote impact seen in online retail
today Jul 26, 2016
June saw online retail delivery volumes in the UK increase by 10.3% year-on-year and 1.6% month-on-month, according to the latest IMRG MetaPack UK Delivery Index.
But most interestingly, the data also provided some of the first insight into the affects the Brexit vote has had on online retail. As the value of sterling fell sharply following the referendum result, there was an increase in the proportion of orders leaving the UK. At 27% of total volume, it's the highest June figure in the five-year-history of the Index, as cross-border shoppers were more attracted by products from UK retailers.
Up until June, the average order value recorded in the index each month has been increasing compared to the same months last year. However, in June, the order value for EU and non-EU destinations fell -13% compared with May’s order value.
Andrew Starkey, head of e-logistics, IMRG, said: “The data this month provides a reasonably clear indication that there were some early impacts on delivery orders following the EU referendum, but it’s worth keeping in mind that June’s data only included one week of post-Brexit tracking – it’s just too early to say if we are seeing the start of a genuine shift in trends. We knew that sterling would take a sudden sharp hit in the event of a vote to leave, but over time it would be expected to recover again – the more important factor for retailers will be how shopper confidence fares in the long-term.”
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