New research conducted by Deloitte Consulting, a business financial advisory firm, says Christmas shoppers in the United Kingdom will spend £5 billion online this season. Total Christmas retail sales are expected to hit £40.3 billion in the United Kingdom this year, up 3.5% from last year. Online Christmas purchases are expected to be up 19% year over year.
However, multichannel retailers who do not offer a click and collect services may be missing out on all that online growth, the research suggests. “After last year’s click-and-collect Christmas, consumers’ expectations around flexible delivery over the coming festive period are higher than ever before,” said Ian Geddes, head of retail at Deloitte UK.
“Store collection is now seen as a basic offering and those retailers without this capability will struggle to convert online sales and lose resulting footfall in-store,” added Geddes. “This year, the consumer will be challenging retailers’ ability to deliver a sofa at home in a specified time-slot; transfer a party dress to their local store for same day collection and drop off their Christmas DVDs at a convenient locker.”
According to Deloitte, particularly good business categories include clothing, if current cold weather continues; department stores and home wares; electrical retailers will be hoping for strong sales of games consoles in addition to tablets and food sales are expected to “remain competitive.”
“The forecast will provide some Christmas cheer for retailers,” Geddes said. “Shoppers are expected to loosen purse strings off the back of rising consumer confidence and improving economic conditions.” Citing their own recent research Deloitte stated that 47% of UK consumers consider empty high street shops as useful sites for online collections.
The survey also points out that 36% of those surveyed would like to pick up small goods purchased online from a dedicated collection point, such as an independent store or a locker near their work or home. At any rate, click and collect capability will be a big factor in the online bottom line -- during the all profit period, post Black Friday.
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