Online Retail Gross Sales Up 8.8% in H1 2023

Online retailing achieved a gross turnover of HUF 631 billion in the first half of this year, 8.8% more than in the same period last year, according to the digital retailing survey by market research company GKID and Mastercard.

The summary, says web sales grew 7.7% in the first quarter and 9.8% in the second quarter compared to the same period last year. However, taking inflation into account, this growth represents a decline for the sector in real terms.

From 9.6% in 2022 to 8.7% in the first half of 2023, the weight of online sales in total retail sales has fallen back to pre-coronavirus levels.

The higher inflationary environment of recent months has led to greater shopper awareness, most notably in terms of price sensitivity and the number of online and traditional stores visited. Shoppers are shopping in fewer stores and price plays a greater role in their choices.

According to summer measurements, 31% of online retailers reported a decrease in sales in the first six months compared to the same period last year, while 43% reported an increase. 53% of online retailers expect growth for 2023 as a whole, while 28% expect a decline. This would represent an average annual growth of 11-12% for the market.