Latest Office of National Statistics figures indicate that small stores in the UK saw a fall in the quantity of sales- unlike large stores who saw an increase- particularly due to sales made online. Adam Stewart, Marketing Director, Rakuten’s Play.com argues why using online marketplaces could help level the playing field.
ONS retail statistics for January 2013- Key Points
• Year-on-year seasonally adjusted estimates of the quantity bought in the retail sector fell by 0.6%, putting a halt to the year-on-year growth seen in the retail sector since August 2011
• Year-on-year estimates (non-seasonally adjusted) showed an overall fall in the quantity bought in small stores, in particular those with 0-9 employees, while large stores saw an increase. This was particularly marked in the food sector with feedback from small retailers suggesting that the heavy snow fall in the latter half of January affected sales. In contrast, feedback from large store retailers suggested that some of the increase in the quantity bought came from a rise in online shopping.
• This January, the overall proportion of non-seasonally adjusted online sales remained above the 10% mark, normally seen during the lead up to Christmas, which was 8.7% higher compared with January 2012.
• Looking at the monthly picture, (January 2013 compared with December 2012) both the seasonally adjusted quantity bought and the amount spent in the retail sector were estimated to have fallen by 0.6% and 0.4% respectively.
• The amount spent in the retail sector was unchanged in January 2013 compared with January 2012. Sales at petrol stations provided the main source of downward pressure to the amount spent in the retail sector. When sales at these stores are excluded the amount spent increased by 1.2%.
Adam Stewart, Marketing Director, Rakuten’s Play.com commented: “It’s disappointing to hear that the January retails sales results are lower than expected, especially for small businesses. The adverse weather over recent weeks certainly had an impact on physical stores and turned many shoppers to online.
“Findings from the European Commission’s Digital Agenda revealed that only 14% of small retailers were selling on the internet last year, meaning that competition for sales against larger retailers is inevitably stifled under such circumstances.
“Independent retailers need to find a fresh way to compete and online marketplaces provide a great platform for smaller retailers to sell on a level playing field while allowing them to remain independent at the same time.
“Having both an online and offline offering is becoming more prudent and these results are a call to action, for smaller retailers especially, to consider the online channel as vital to their strategy.”
Source: www.play.com
