Online sales increased 11 per cent in May as shoppers took to the web to seek discounts from struggling retailers.
Sales over the internet helped boost retail sales traditional retailers seeking to clear stocks after cold weather dogged the early months of the year, according to the British Retail Consortium. Total retail sales increased 3.4 per cent during the month.
'To some extent retailers had their bacon saved by online sales, underlining the growing importance of the digital channel. Online sales growth helped to counter variable performances on the high street as many chose to take advantage of the same promotional offers from their sofas,' said head of retail at KPMG David McCorquodale.
He said: 'Consumers remain highly sensitive about price and retailers are increasingly using promotional activity to drive footfall or the online equivalent. Just how much margin is being given away to boost sales is yet to be seen in the retailers' accounts but, on the surface, these promotions seem to be working.'
Furniture, flooring, childrenswear and electricals - mainly from those seeking an alternative to the collapsed Comet - sold well. Gardening, DIY and fashion sales also began to pick up as the first signs of summer weather broke through.
'The signs are that retailer read conditions well in May and adapted their offer accordingly. Customers are still price-concious but responding well to good deals, especially for big ticket items. But volatile economic conditions mean that this will remain a delicate balancing act for some time to come,' said Helen Dickinson, director general of the BRC.
The BRC last week kicked off a campaign criticising the tax burden placed on the sector by the Government. The campaign comes against the backdrop of Business Select Committee inquiry into the sector and the state of the high street.
BRC chairman Ian Cheshire claims the tax on retailers has increased by 65 per cent since 2005 driven by an 80 per cent increase in taxes other than corporation tax - such as business rates. The increases have made a pledge by Government to cut corporation tax to 20 per cent by 2015 worthless.
Cheshire, who has held discussions with the treasury alongside Sainsbury's chief executive Justin King, said the tax system has become 'unsustainable' for retailers. 'Ultimately the tax take will have to fall - we need to find a Plan B,' he said.
Tuesday, 4 June 2013
Primark Launches First Ecommerce Offer With Asos
It is the first time the retailer will offer its own ranges on the web. There are already hundreds of pre-owned Primark products available on various sites including Asos.
Primark said in a statement: 'Primark is undertaking a very limited trial of online sales with Asos. This trial relates to a small number of fashion items and will give the company some insight into online retailing. The company's priority remains to push ahead with the roll-out of physical stores in high street locations on the continent and in the
Last night, there were 20 items including dresses, jeans and jackets on the Asos.com Marketplace site priced at between £6 and £22. The trial will last for several months.
Primark has always said privately that it could not make the cost of sending clothes to customers from a web site stack up and that it would rather keep attracting shoppers to stores.
In 2011 Primark launched a limited range in Selfridges. The trial with Asos comes after Primark apparently said less than two months ago in an interview with the Guardian that it had no such plans.
Chicago Plays Host To World's Biggest Internet Retail Conference
We've always thought conferences were an excuse to avoid work rather than do any. But the inexorable pace of change in ecommerce these days means they may just prove worth the entrance fee.
Keeping in touch, making new contacts and getting ideas has never been so important.
Today the Internet Retailer Conference & Exhibition 2013 kicks of in Chicago. If you didn't make it to the Windy City, there are other less glamorous events closer to home over the next few months. But the wonders of the internet also means that we'll at least get some of the information picked up by the 9,500 attendees from the 200 or so speakers.
We'll be keeping an eye on events so keep your eye peeled.
Keeping in touch, making new contacts and getting ideas has never been so important.
Today the Internet Retailer Conference & Exhibition 2013 kicks of in Chicago. If you didn't make it to the Windy City, there are other less glamorous events closer to home over the next few months. But the wonders of the internet also means that we'll at least get some of the information picked up by the 9,500 attendees from the 200 or so speakers.
We'll be keeping an eye on events so keep your eye peeled.
Monday, 3 June 2013
Next Day Delivery Is So Last Month....
Next day delivery is yesterday's news - at least for Chinese retailer Jingdong, the country's answer to Amazon.
The online store has launched a three hour delivery option in what is claimed to be the fastest in China - and most other countries, we suspect. What's interesting is that Jingdong, which trades as JD.com, is not a luxury goods retailer catering for the elite but a general merchandise retailer selling everything from t-shirts to toys.
Amazon and others have been trying to cut delivery times but struggling to weigh cost against demand. Most UK retailers would struggle to guarantee your order would reach you the next day. Some niche or high-end sites may have bespoke services offering fast delivery but there are none that could complete with the scope of Jingdong's strategy.
Jingdong's shoppers who are desperate to track the progress of their beloved products can monitor its journey in real time on a map and even call the driver. The service is now in six cities covering 80 million people.
As well as the three hour option launched by Jingdong, formerly called 360buy, a night-time service allows shoppers to make their orders by 3am and receive them between 7am and 10am.
The service is part of a war for dominance between Jingdong and Chinese internet behemoth Alibaba which owns vendor platforms Taobao and Tmail. Last year Jingdong began recruiting its own force of bikes and delivery vans and is keen to use the advantage over Alibaba as well as the fact that it, unlike its rival, owns its own stock rather than selling through vendors like eBay.
The online store has launched a three hour delivery option in what is claimed to be the fastest in China - and most other countries, we suspect. What's interesting is that Jingdong, which trades as JD.com, is not a luxury goods retailer catering for the elite but a general merchandise retailer selling everything from t-shirts to toys.
Amazon and others have been trying to cut delivery times but struggling to weigh cost against demand. Most UK retailers would struggle to guarantee your order would reach you the next day. Some niche or high-end sites may have bespoke services offering fast delivery but there are none that could complete with the scope of Jingdong's strategy.
Jingdong's shoppers who are desperate to track the progress of their beloved products can monitor its journey in real time on a map and even call the driver. The service is now in six cities covering 80 million people.
As well as the three hour option launched by Jingdong, formerly called 360buy, a night-time service allows shoppers to make their orders by 3am and receive them between 7am and 10am.
The service is part of a war for dominance between Jingdong and Chinese internet behemoth Alibaba which owns vendor platforms Taobao and Tmail. Last year Jingdong began recruiting its own force of bikes and delivery vans and is keen to use the advantage over Alibaba as well as the fact that it, unlike its rival, owns its own stock rather than selling through vendors like eBay.
Shoppers Reject Poor Mobile Sites - And Small Screens
Consumers are shunning poor mobile sites despite massive growth in sales to mobile devices, according to a study in the US.
Software firm Kentico said 44 per cent of online shoppers say they wouldn't return to a site that was unwieldy and not mobile friendly.
The reseach suggested that three quarters of smart phone and tablet users said the look and feel of a site feeds in to their purchasing decision. Meanwhile, 85 per cent of mobile users said they use their devices to compare information about companies, products and pricing before making a purchase and 45 per cent of those do so from a store's actual location.
The research follows a report from internet retailing body the IMRG that one fifth of web sales are now conducted through mobile phones.
However, the study also said that, given the choice, 63 per cent would still rather shop in a store’s physical location than via the Internet. Furthermore, online shoppers seem to prefer larger screens over smaller ones, with mobile device preference shrinking along with screen size. This may also be attributed to the many businesses that have not yet invested in sites that are optimized for mobile, the study suggested.
When asked which devices typically provide the best shopping experiences, 48 per cent said computers, 40 per cent laptops, 9 per cent tablets, and 3 per cent mobile phones. 'Our survey suggests that while shoppers like the convenience of shopping online via mobile devices, they still want as much of an in-store experience as possible,' said Kentico CEO and founder, Petr Palas.
'While it may be impossible for businesses to provide mobile shoppers with a 100 per cent in-store experience, they need to make mobile shoppers ‘feel’ as if they’re truly in their stores, touching their products, talking to sales reps, and being catered to. Otherwise, they will lose business to those sites that do,' he said
Software firm Kentico said 44 per cent of online shoppers say they wouldn't return to a site that was unwieldy and not mobile friendly.
The reseach suggested that three quarters of smart phone and tablet users said the look and feel of a site feeds in to their purchasing decision. Meanwhile, 85 per cent of mobile users said they use their devices to compare information about companies, products and pricing before making a purchase and 45 per cent of those do so from a store's actual location.
The research follows a report from internet retailing body the IMRG that one fifth of web sales are now conducted through mobile phones.
However, the study also said that, given the choice, 63 per cent would still rather shop in a store’s physical location than via the Internet. Furthermore, online shoppers seem to prefer larger screens over smaller ones, with mobile device preference shrinking along with screen size. This may also be attributed to the many businesses that have not yet invested in sites that are optimized for mobile, the study suggested.
When asked which devices typically provide the best shopping experiences, 48 per cent said computers, 40 per cent laptops, 9 per cent tablets, and 3 per cent mobile phones. 'Our survey suggests that while shoppers like the convenience of shopping online via mobile devices, they still want as much of an in-store experience as possible,' said Kentico CEO and founder, Petr Palas.
'While it may be impossible for businesses to provide mobile shoppers with a 100 per cent in-store experience, they need to make mobile shoppers ‘feel’ as if they’re truly in their stores, touching their products, talking to sales reps, and being catered to. Otherwise, they will lose business to those sites that do,' he said
'Staggering' Online Sales Through Mobiles Set To Out Strip PCs
Online sales on mobile devices have increased by a almost quarter in the past year and now account for a fifth of all web sales.
Analysts now expect sales though mobile devices such as phones and tablets to outstrip PCs 'sooner than expected'.
E-tail sales on mobiles in the first quarter of 2013 increased to 20.2 per cent from 15.4 per cent in the same period last year. Visits on mobile devices increased to 30 per cent, up from 24 per cent a year earlier, according to the research from the internet retailing body IMRG and business consultancy Capgemini.
The report said: 'The surge is likely to have been influenced by the huge increase in tablet-owners following strong sales of the devices over Christmas. Mobile has long been considered a key part of any retail strategy yet the growth rates have been staggering nevertheless.'
'Mobile is clearly a game-changer for the UK e-retail industry, with m-retail sales. At the beginning of 2010 mobile sales accounted for just 0.4 per cent of the UK e-retail market – within three years it has surged a staggering 5,000 per cent, with m-retail now accounting for one in every 5 online purchases,' said the IMRG's chief information officer Tina Spooner.
'With the continuing shift away from desktop to mobile internet use, it is inevitable we will see the latter platform outstrip desktop PCs as the preferred device for shopping online, and from the latest figures it is apparent this may be sooner than expected,' she said.
Sean McKee, Head of ecommerce and customer services at Schuh said: 'We have continued to see mobile device participation and sales power ahead in the first quarter of 2013, and believe that this will be the last quarter where desktop traffic is still the majority player. For us at least, a key tipping point is about to be reached.'
Analysts now expect sales though mobile devices such as phones and tablets to outstrip PCs 'sooner than expected'.
E-tail sales on mobiles in the first quarter of 2013 increased to 20.2 per cent from 15.4 per cent in the same period last year. Visits on mobile devices increased to 30 per cent, up from 24 per cent a year earlier, according to the research from the internet retailing body IMRG and business consultancy Capgemini.
The report said: 'The surge is likely to have been influenced by the huge increase in tablet-owners following strong sales of the devices over Christmas. Mobile has long been considered a key part of any retail strategy yet the growth rates have been staggering nevertheless.'
'Mobile is clearly a game-changer for the UK e-retail industry, with m-retail sales. At the beginning of 2010 mobile sales accounted for just 0.4 per cent of the UK e-retail market – within three years it has surged a staggering 5,000 per cent, with m-retail now accounting for one in every 5 online purchases,' said the IMRG's chief information officer Tina Spooner.
'With the continuing shift away from desktop to mobile internet use, it is inevitable we will see the latter platform outstrip desktop PCs as the preferred device for shopping online, and from the latest figures it is apparent this may be sooner than expected,' she said.
Sean McKee, Head of ecommerce and customer services at Schuh said: 'We have continued to see mobile device participation and sales power ahead in the first quarter of 2013, and believe that this will be the last quarter where desktop traffic is still the majority player. For us at least, a key tipping point is about to be reached.'
Sunday, 2 June 2013
WorldStores Gets £10 Million To Fund Growth
Online furniture and home retailer WorldStores has secured £10 million to fund growth plans.
The funding from new investor Serena Capital and existing backers Balderton Capital and Advent Venture Partners takes the total raised by WorldStores so far to £20 million, the Sunday Telegraph reports today.
The Twickenham-based firm, founded by Joe Murray and Richard Tucker in 2007, claims to be the UK's biggest online home and garden retailer and expects turnover to be £75 million this year. They want to extend its 500,000 product lines, many of which are shipped by WorldStores directly from 800 suppliers using third-party carriers. It relies on technology to communicate the levels of stock each supplier is holding.
'What we offer is huge choice, fast delivery and service. We know you can’t post a sofa through a letterbox and it’s a big deal for customers to stay at home and wait. We’re working on being able to offer two-hour delivery windows,' Murray told the paper.
The firm said it bases the names of its 60-plus web sites on terms shoppers use to search for products. For example, it changed the name of TrampolinesWorld to OutdoorToysWorld based on analysis of search and purchasing behaviour, it said.
The funding from new investor Serena Capital and existing backers Balderton Capital and Advent Venture Partners takes the total raised by WorldStores so far to £20 million, the Sunday Telegraph reports today.
The Twickenham-based firm, founded by Joe Murray and Richard Tucker in 2007, claims to be the UK's biggest online home and garden retailer and expects turnover to be £75 million this year. They want to extend its 500,000 product lines, many of which are shipped by WorldStores directly from 800 suppliers using third-party carriers. It relies on technology to communicate the levels of stock each supplier is holding.
'What we offer is huge choice, fast delivery and service. We know you can’t post a sofa through a letterbox and it’s a big deal for customers to stay at home and wait. We’re working on being able to offer two-hour delivery windows,' Murray told the paper.
The firm said it bases the names of its 60-plus web sites on terms shoppers use to search for products. For example, it changed the name of TrampolinesWorld to OutdoorToysWorld based on analysis of search and purchasing behaviour, it said.
Comment: Web Retailers 'Moonlighting' With Two Jobs
Ecommerce 'moonlighting' on the web is not a new phenomenon. For years people have dabbled on eBay to help make a bit of extra money on the side.
But it seems, at least anecdotally, that the increase of easy-to-use ecommerce software and payment systems is lowering the barrier to entry for more comprehensive shops and new ideas. That coupled with a slow job market for many and low wage increases is all the incentive the budding entrepreneur needs to get started.
Evidence is hard to find at the moment, But, according to Australia's Business Spectator web site, one ecommerce software firm Bigommerce.com says around 48 per cent of its users log on to their sites in what appears to be after-office hours between 5pm and 9pm and at midnight. The firm's co-founder Eddie Machaalani said they were 'starting' to see the evidence but he accepts that it is difficult to separate out those who are logging on after work from those who are simply logging on frequently - 82 per cent log on at midday, for example.
We know companies make self-serving statements about usage that aren't always backed up by solid facts to tap into our imaginations. But then there are also stories that make sense whether the facts are there to back them up yet or not - and this one certainly does.
But it seems, at least anecdotally, that the increase of easy-to-use ecommerce software and payment systems is lowering the barrier to entry for more comprehensive shops and new ideas. That coupled with a slow job market for many and low wage increases is all the incentive the budding entrepreneur needs to get started.
Evidence is hard to find at the moment, But, according to Australia's Business Spectator web site, one ecommerce software firm Bigommerce.com says around 48 per cent of its users log on to their sites in what appears to be after-office hours between 5pm and 9pm and at midnight. The firm's co-founder Eddie Machaalani said they were 'starting' to see the evidence but he accepts that it is difficult to separate out those who are logging on after work from those who are simply logging on frequently - 82 per cent log on at midday, for example.
We know companies make self-serving statements about usage that aren't always backed up by solid facts to tap into our imaginations. But then there are also stories that make sense whether the facts are there to back them up yet or not - and this one certainly does.
Ebay Wants To Catch Customers ‘Snacking’
Ebay’s UK boss wants to catch customers
‘snacking’ on the internet as more people access its site for short periods
though mobile devices.
Over the coming weeks, eBay will introduce personalised pages for mobile users using data on shopper preferences.
‘My aspiration would be for us to be changing and providing these offers in very high frequency so that every time you come back you see something that’s relevant to you,’ she told trade newspaper Retail Week (£). She cited Net-a-Porter as an example of a web site she visits frequently. ‘I’m always going back to look at what’s new if I've got five minutes to spare.’
‘We want to drive disruptive innovation and ask what’s the next big thing. We have to change the game and thinking differently about things is what we do,’ she said in the interview. Lawler, formerly supermarket Sainsbury’s ecommerce director, also said she believes technology-based firms such as web sites can evolve much faster than retailers. She said it was a ‘challenge’ for retailers to innovate quickly
Comment: Lawler has set her sites on something that savvy bloggers and ecommerce web sites have known for a long time. Regularly refreshing your site with new product and information engages customers and keeps them coming back. Doing the same on mobile sites clearly has its problems - not least the size of the screen for smartphone users. With the rapid move to mobile shopping it will be interesting to see how retailers large and small translate large-screen strategies.
Saturday, 1 June 2013
Online Retailers More Than Double In Four Years
The number of online retailer have doubled in the past five years and online-only retailers now employ 72,000 people in the UK.
The study by Royal Mail shows the number if online-only businesses in the UK have increased from 6,700 in 2008 to 14,400 last year.
Over the period, 15,000 new jobs were created by ecommerce start-ups businesses which trade solely online. Online-only retailers grew by 21.3 per cent a year in the period compared to a 0.4 per cent annual fall in the number of businesses contributing to the UK economy, a study, by the Centre for Economics and Business Research, found.
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