UK eCommerce retailers saw revenue dip but Average Order Value (AOV) surged in the lead up to Father’s Day on 18 June 2023, data from the eCommerce provider Visualsoft has revealed.
The growing demand for Father’s Day follows the popularity of last year’s event, which exceeded £986 million, according to Statista.
Despite the challenging economic climate, and although total eCommerce revenue was down by 8% compared to the previous year, AOV increased by an impressive 18%. 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%, whilst AOV declined by 9%, attributed to discount-driven behaviour, with retailers relying heavily on promotions during the holiday period.
Health, beauty, and cosmetics: revenue dipped 22% but there was a 13% 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% increase in AOV, whilst revenue was down 13%. 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% for Father’s Day, indicating a challenging year for the fashion sector.
Lenny Nash, CEO of Visualsoft, commented: “For UK eCommerce 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, eCommerce brands saw an average increase of 3% 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 eCommerce landscape continues to evolve, it’s really important for businesses to adapt and meet the changing needs and preferences of their customers,” Nash concluded.