Sunday Nov 27, 2022

Online prices continue slow growth trend – Chain Store Age

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Although online inflation increased for the 25th straight month in June, its growth is starting to slow. 

Online prices increased 0.3% year-over-year in June while decreasing 1% month-over-month, according to the latest Adobe Digital Price Index. While this marked the 25th month of  online inflation year-over-year, June is the third month where online price increases have slowed.

In 2022 so far, consumers have spent a total of $451.7 billion online, up 7.5% year-over-year.  In June, consumers spent $74.1 billion online, which represents approximately 1% year-over-year growth. Online spending decreased in June compared to April ($77.8 billion) and May ($78.8 billion) 2022. The Amazon Prime Day event, which historically drives higher levels of overall online spending, occurs July 12-13 this year.

[Read more: Amazon sets official date for Prime Day]

Key categories including online electronics and apparel saw price decreases, driving down online retail inflation overall. In June, 11 of the 18 categories tracked by Adobe saw year-over-year price increases, with groceries rising the most. Price drops were observed in seven categories: electronics, jewelry, books, toys, computers, sporting goods and apparel.

Eleven of the 18 categories  saw price increases month-ver-month. Price drops were observed across seven categories including electronics, office supplies, books, appliances, flowers and related gifts, computers and apparel.

Notable categories in the Adobe Digital Price Index for June:

  • Apparel: Prices were down 0.1% year-over-year  (down 4.06% month-over-month) – standing out as the category with most notable change in June and significantly down compared to its 9.03% YoY increase in May. This is the largest YoY drop for the category since March 2021, when prices were down 3.4% YoY.
  • Electronics: Prices continued to decrease 7.28% YoY (down 1.34% MoM). This is the largest YoY decrease for the category since May 2020, when prices were down 6.8% YoY.
  • Groceries: Prices in this category continued to surge and rose 12.44% YoY (up 0.7% MoM), setting a new record on an annual basis. This follows a series of record highs: 11.7% YoY increase in May, 10.3% YoY increase in April, 9% YoY increase in March and a 7.6% YoY increase in February. Groceries remains one of the main categories to move in lockstep with the consumer price index (CPI) on a long-term basis, with online prices rising now for 29 consecutive months.
  • Pet products: Prices were up 11.35% YoY (up 2.01% MoM), continuing to set record YoY highs for the category. Online inflation for pet products has now been observed for 26 …….

    Source: https://www.chainstoreage.com/online-prices-continue-slow-growth-trend

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