UK online retail sales grew by more than 70% in March, and online business remains strong

IMRG's Capgemini Online Retail Index, which tracks sales performance of more than 200 retailers, showed online sales in March grew 71.7% year-on-year.

The study found that almost all sales categories reported positive growth, but there were signs that the two best performing sectors last year included electronics , which grew 78.5%, a sharp drop from last year's peak of 206.6%, while the health and beauty sector grew 46.5%.

Clothing sales continued to rebound, up 75% year-on-year as consumers looked to update their wardrobes after the lockdown . The garden category continued to see strong growth , up 120.3% year-on-year, building on last year’s record 224.6% .

Beer and wine was the only category to not grow, with sales down 6.7% year-over-year after growing 105.7% in March 2020.

Despite the good growth in online business, experts are cautious about the impact of the opening of the high street on sales growth in the coming months . Matthew Walsh, head of data and retail at IMRG, said: " The online retail industry is set to see turbulence in the coming months as lockdown restrictions are eased and social plans are implemented .

Data from Barclaycard also showed that retail spending overall increased by 17.9% due to the growth of e-commerce. Online retail transactions increased by 84.7% compared to 2019 and accounted for 51.6% of all retail spending in March.

Raheel Ahmed, head of consumer products at Barclays, added: “As spring finally arrives and restrictions begin to ease, it is encouraging to see a renewed sense of optimism across much of the UK. There are also signs that some of the sectors worst affected by the pandemic, such as hotels, resorts, accommodation and entertainment, are starting to improve as many people look forward to embarking on long-awaited trips and activities with family and friends .”

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