Retailers Are Expecting Too Much From Online This Festive Season, Survey Says

We on the site find it difficult to imagine that this won't be the biggest internet Christmas by a long and happy margin - particularly with the rapidly growing demand for clothing online.

But there is always someone to cast a shadow over those predictions.

According to comparative research commissioned by Peerius the gulf between retailers' expectations and consumer plans is wider than we thought.

The survey of 25 online retailers indicates that 88 per cent expect sales to grow by 20 per cent or more and 25 per cent expect sales to grow by at least 50 per cent. But a sample of 2,000 adults suggests that 66 per cent of consumers expect to spend the same as last year and 16 per cent expect to spend less.

Only 17 per cent expect to spend more. Of those, the average increase in spending is 26 per cent more than last year.

The survey clearly strikes a note of caution but it seems odd to us given that online sales are tracking a good 10 -15 per cent above last year. More in some categories such as clothing.


The survey also asked what customers disliked about online shopping. pop-up advertising was number one, badly organised web sites another while only 7 per cent complained that sites were not good enough to use with mobile phones.

Meanwhile, 43 per cent said they would welcome more flexible delivery options.

Peerius director Roger Doddy said: 'These findings are a timely reminder for retailers that there is absolutely no room for complacency. If retailers are to deliver the online sales performance they are hoping for, and on which survival may well depend, the hard work starts now because it appears that delivering growth will mean taking a larger share of spend, rather than benefiting from significantly higher spending overall.'

'Last year, brands like John Lewis and House of Fraser showed that very significant online revenue increases at Christmas depend on delivering highly engaging online experiences, whilst Arcadia has already demonstrated that effective personalisation can deliver significant growth. Plenty of brands will have to follow those examples if they are to avoid disappointment when the numbers are added up after Christmas,' he said.