Adobe ’s ‘UK retail insights’ report for February 2023 revealed that UK online spending jumped 7% in February to GBP 8. 4 billion, reflecting increase in Buy Now, Pay Later use.

Based on ‘Adobe Analytics’ data, the report covers tens of billions of visits to UK retail sites, 100 million SKUs, and 18 product categories, analysing sales transactions online to provide a comprehensive view into UK ecommerce. Adobe Analytics is part of Adobe Experience Cloud, relied upon by major retailers to deliver, measure, and personalise shopping experiences online. Consumers turn more to BNPL rising inflation February’s data shows that UK consumers spent GBP 8.

4 billion online, representing a 7% increase from January 2023 figures. Spending was pushed higher by a 3. 7% monthly increase in online food prices, reflecting shortages seen in UK supermarkets towards the end of the month.

Compared with February 2022, prior to the economic squeeze caused by the cost-of-living crisis, total online spending decreased by 7. 4%. Adobe Analytics also identified a further increase in the use of Buy Now, Pay Later (BNPL) services, as consumers continued to spread the cost of purchases.

BNPL was used in 14% of online purchases in February, up from 12% in January 2023 and 11% in February 2022. In addition to using BNPL more frequently, consumers are also spending more using these services, with 4% higher average online BNPL purchase values in January and February 2023 compared with the same period in 2022. Steady increases in BNPL use have led the UK Government to consult on draft legislation that will bring these services into Financial Conduct Authority regulation, offering greater protection for the growing number of consumers who use them.

A good outlook on ecommerce The digital economy and ecommerce have both experienced significant long-term growth. In February 2023, consumers spent 34. 8% more on online purchases compared to February 2020, representing a 10.

5% annualised growth rate over the last three years. Officials from Adobe said that the resilience of the digital economy is a positive sign for UK businesses and for consumers, who are increasingly turning to their mobile devices to shop quickly and conveniently on the move. However, further increases in the use of Buy Now, Pay Later services suggests that the effects of high inflation and rising bills are hitting consumers hard, causing them to turn to unsecured credit facilities to manage the increasing costs of purchases.

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