Interviews, insight & analysis on Ecommerce

Retail sector sees 8% rise in revenue across affiliate network

The retail landscape has seen an 8% increase in revenue year on year (YoY) throughout Q2 of 2022, according to new data from global affiliate marketing platform, Awin. Despite challenging market conditions, sales were up 4% YoY between April and June, with over £1.2billion in revenue being tracked on the network across 40 different sub-sectors.

Browsing behaviour was up by 45%, while average order value (AOV) hit £101.27, a £6.52 increase from H1 of 2021. Yet, this increase in spend is likely to be as a result of brands passing extra costs to customers rather than out of choice or to access a better product or service.

Best performing sectors YoY include erotic (+350%), childrenswear (+118%), pharmaceuticals (+37%), pet (+45%), jewellery (+33%) and DIY (+17%).

Retail and travel client partner at Awin, Joelle Hillman, commented: “Many of the sectors that saw growth over the last 24 months and were cited as ‘lockdown trends’, from getting prescriptions online during high street closures to taking on more DIY projects during lockdown. However, the continued growth in these sectors is a clear indicator that purchase behaviour has moved online, and specifically into the channel, for good.

“We are also seeing the continuation of ‘the lipstick effect’, despite a rise in prices, and decline in disposable income the UK are still keen to treat themselves to life’s little luxuries, with health and beauty up 21% and jewellery up 33%.”

One ‘lockdown trend’ that hasn’t remained however is online alcohol purchases, which are down 39% YoY, as we’re able to enjoy bars and restaurants again, and more recently pub gardens. Computer sales are also down on last year (-22%) as well as office supplies (-23%) now many remote workers are likely to have their home offices fully equipped.  

Clothing has also seen strong growth YoY, with menswear sales up by 33%, womenswear up 25%, and childrenswear up 118%.

Hillman said: “Despite Awin figures showing retail as a whole, and many sub-categories, up YoY, other data across the industry tells a very different story. The affiliate channel bucks the trend with performance on the up, suggesting that many brands are choosing to channel marketing spend into the performance model through periods of soaring costs and inflation.”

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