Shoppers choose screens over high streets despite heatwave

The Confederation of British Industry (CBI) has released its latest High Street Sales Tracker information and it tells a familiar story: ecommerce triumphed over traditional retail in June.

High street sales continue to lag and rose just 0.6% last month, compared to a year earlier. This is the sixth month of consecutive below-inflation growth. 

In contrast, ecommerce has enjoyed a healthy 4.3% increase on the same metric with fashion sales boasting a 10% growth. 

For ecommerce businesses now’s the time to double down on performance, marketing, and conversion. But for multichannel brands, the figures suggest it may be time to reassess the role of physical retail in the broader customer journey.

A growing void between channels

Some might have been hoping that the heatwave at the end of June will have forced more of us outside and sent footfall rising. But screens, it seems, won over shop fronts.

Overall, the CBI data shows that consumers are still cautious about their spending; but are opting for online shopping over visiting stores when they do decide to buy. 

The news will not come as a surprise to sellers. June has continued a longer-term trend of falling in-store volumes, which according to the CBI, have been down nine months in a row. 

In September, PwC reported that a total of 6,945 stores have closed in 2024 to date, which was the equivalent to 38 shops per day. 

Among the victims were nationwide brands. Boots announced that it was closing 300 stores, JD Wetherspoons announced it would be putting several of its UK sites up for sale and  Lloyds, Halifax and Bank of Scotland announced plans to close 292 stores by 2025. 

There were also the high street favourites that filed for administration, including TGI Friday, The Body Shop, Ted Baker and Lloyds Pharmacy.

What’s emerging is not just a reflection of economic pressure – but also a structural shift. The agility of ecommerce is proving hard to match. 

Whether it’s reacting to weather, demand spikes, or viral trends, online businesses can pivot quickly. For physical stores, adapting to change is slower and costlier.

How to balance investing in online and offline

While these figures don’t paint an optimistic picture, there are some brands that are riding the storm, if not flourishing. High street stalwart M&S announced a renewal plan, focusing on its convenience stores and concentrating on high footfall locations like hospitals and airports. 

Meanwhile, fashion brand George at ASDA is now chasing Primark’s glory and the supermarket chain is transforming 100 stores to put fashion first and foremost. 

While some of the attributes of ecommerce can’t be replicated in offline stores, experts are pushing for retailers to reinvent their in-store offerings and ensure continuity of experience. Sophie Michael, head of retail and wholesale at BDO told Retail Sector: “…retailers need to continue to invest in blending their physical and online offerings.” 

Everywhere, omnichannel innovation is taking root: Primark introduced a click-and-collect offering that has increased footfall, for example. Waitrose is following M&S’s example and opening new smaller stores; as is Screwfix, which announced it will open up to 35 Screwfix City stores within this financial year. 

Superdrug is instead opting to target the higher end of its market. It plans to open “gold-tier stores” that offer additional services like ear piercing, manicures, and brow threading. 

The shared thread is convenience. Whether because of the location and need for speed, good accessibility and availability, convenience has become the currency of modern retail.

Ultimately, an integrated omnichannel approach – in-store and on ecommerce platforms – offers the speed and scale of ecommerce alongside the experiential and immediate benefits of physical retail. For many, that balance could help them to avoid joining the list of closures.