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Published
Aug 25, 2022
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Mid-market benefits as UK e-shoppers focus on quality

Published
Aug 25, 2022

Endless talk of the cost of living crisis may be affecting consumer behaviour when it comes to shopping, but online, it's not driving them into the arms of budget retailers. Instead it looks like mid-market e-sellers are enjoying a boost.



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Figures from the IMRG Capgemini Online Retail Index show that consumers are prioritising quality over budget prices when shopping online. It looks like some are trading up, while others are trading down from the premium segment and that's good news for retailers in the middle.

In fact, for July, sales of mid-market goods rose 4%, the only price level to see an increase. And in the six months to March, it seems that online retail sales for budget goods fell 16% while premium goods were down 9% and mid-market goods dropped only 5%.

The Index tracks online sales for 200 retailers and it said that the Average Basket Value (ABV) has risen from January’s £106 to £146 by July.

We’re told this suggests Britons are “unable to let go of high-quality items so [are] compromising with mid-market options in an attempt to balance new budget constraints”. 

More movement in general within the ABV for both the premium and mid-market categories also pointed to discounting being used as a tactic to boost sales – something budget retailers (whose ABV has remained flat) have little scope to do.  

Simon Binge, Commerce Senior Manager, Customer Transformation at Capgemini said: “With mounting economic pressures and very little positive news on the horizon, it’s telling that UK consumers are opting for quality compared to price in the value equation. 

“Whilst there are signs of trading down, consumers are still unwilling to compromise on quality and are being helped by discounting in higher price points. It remains to be seen, however, whether this behaviour – and retail promotional activity survives the potential worsening of economic conditions in Autumn and beyond.”

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