Online sales were up a dramatic 25% on the previous July, while the high street slumped, according to new data from BDO. Adam Stewart, Marketing Director at Rakuten’s Play.com argues that figures don’t herald the death of the high street, but retailers need a more flexible supply chain to shift stock.
The fact that online sales are up a staggering 25 per cent compared to last July shows how retail is changing and how online should be playing an increasingly important role for retailers. It’s not surprising that high street sales have dipped this summer. With the wet weather and the expected congestion in London from the Olympics, consumers have understandably been avoiding the high street.
At the moment it’s risky even to run from shop to shop without an umbrella and people want to steer clear of the anticipated congestion that the Olympics has brought to London’s busiest shopping streets.
This huge increase in online spend over the last year is proof that more and more customers are not only searching the internet for great products and prices, but also making the final decision to buy online, and retailers needs to take note and devise a strategy which uses the strengths of both the online and offline channels.
The high street and internet can be combined to strengthen a retailer’s offering, with many people using their mobiles on the go to find deals nearby and laptops at home to research prices before going out to buy on the high street.
Campaigns that effectively link up online and offline offerings include issuing online vouchers to be redeemed in store and incentives on social media rewarding brand loyalty. The results of the BDO high street tracker show that it’s imperative to have an online offering but it’s even more important that online does not herald the death of the high street.
Adam Stewart
Marketing Director
Rakuten’s Play.com