Father's Day delivers a mixed bag for online retailers - A1 Retail Magazine - Studio Nafay

Father’s Day delivers a mixed bag for online retailers – A1 Retail Magazine

UK e-commerce retailers saw revenue dip but Average Order Value (AOV) surged in the lead up to Father’s Day on 18th June 2023, data from the e-commerce provider Visualsoft has revealed.

Despite the challenging economic climate, and although total e-commerce revenue was down by 8 percent compared to the previous year, AOV increased by an impressive 18 percent. This shift suggests that while fewer sales were made, the value of each individual sale has significantly increased, with shoppers willing to spend on higher value items in spite of the ongoing cost-of-living crisis.

Sector-specific insights, include:

Footwear brands saw sales increase 8.45 percent, whilst AOV declined by 9 percent, attributed to discount-driven behaviour, with retailers relying heavily on promotions during the holiday period.

Health, beauty, and cosmetics: revenue dipped 22 percent but there was a 13 percent increase in AOV compared to the previous year, suggesting a preference for premium or higher-priced products, despite the cost-of-living crunch.

Sports and outdoors: saw a 10 percent increase in AOV, whilst revenue was down 13 percent. With the arrival of summer and warm weather coinciding with Father’s Day,  it resulted in higher transaction values at a peak time for outdoor activities.

Fashion: Revenue and AOV both declined by 4 percent for Father’s Day, indicating a challenging year for the fashion sector.

Lenny Nash, CEO of Visualsoft, commented: “For UK e-commerce brands, Father’s Day revealed contrasting patterns: revenue took a dip, but Average Order Value surged, showcasing a shift in consumer behaviour. However, it’s encouraging to see that despite economic challenges, shoppers demonstrated their willingness to invest in higher-value items, defying the cost-of-living crisis and providing confidence for retailers. While some sectors such as sports gear thrived, others such as fashion faced hurdles. In these challenging times, success continues to favour brands that prioritise value, creating outstanding interactions and memorable customer journeys. Despite the ongoing difficulties, those who go the extra mile in these areas will emerge victorious.”

Overall, e-commerce brands saw an average increase of 3 percent for mobile shopping over the weekend,  indicating that the trend to shop via mobile continues to rise. “The rise in mobile shopping indicates a growing preference for convenience and seamless experiences for on-the-go, time-poor shoppers. As the e-commerce landscape continues to evolve, it’s really important for businesses to adapt and meet the changing needs and preferences of their customers,” Nash concluded.

Image courtesy of Unsplash. Photo credit: Caroline Hernandez.


Leave a Reply

Your email address will not be published. Required fields are marked *