Monday, 17 February 2014

Online Sales Do Not Cannibalise The High Street, Claims Deloitte

Online shopping does not cannibalise high street sales but helps to add to existing spending, according to a study by Deloitte on behalf of Ebay.

The study found that about 95 per cent of women's dresses bought online were in addition to spending in physical shops, according to the study by Deloitte - and commissioned by Ebay UK - of 17 large UK fashion retailers between 2009 and 2013.

The retailers accounted for a about half of total spending in the market, the Financial Times reported. It said another study, also comissioned by Ebay, found a similar effect in the appliances market in Germany where 98 per cent of spending was in addition to the high street.

The survey - which has been received with a little scepticism by several retailers both on and offline that we have spoken with so far this morning, with one suggesting the argument was 'a little academic' and the situation much more complex than the survey suggested - was backed up by John Lewis managing director Andy Street.

He told the FT that the media had 'set the two channels against each other' but he said it was 'not as simple as cannibalisation' because customers shopping both channels at one retailer usually spend more than others.

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