Retailers with strong Omni-channel strategies are Christmas winners
Online sales of non-food products in the UK grew 19.2% in December versus a year earlier, the highest growth in four years, according to the British Retail Consortium and KPMG.
Overall retail sales were marginally up (0.4% on a like-for-like basis from December 2012).
John Lewis was one of the strongest performing retailers with online sales rising nearly 23% and in-store sales climbing 1.2% in the five weeks to 28 December.
The strong growth in online sales shows clearly that retailers with well integrated sales channels and developed and attractive online propositions are more competitive.
BRC director general Helen Dickinson said: “Multichannel was a big story of the season. This Christmas we’ve seen innovative retailers using click and collect and other approaches to make a virtue of both their website and their physical shops. And that’s something we see growing in importance. Fast deliveries and social media offers have also helped consumers plan ahead and cover off Christmas lists efficiently.”
KPMG head of retail David McCorquodale added: “December 2013 was all about nerve, margin and multi-channel. Those retailers who provided a seamless service between channels will feel pleased. Retail sales growth is being driven by the click of a mouse, rather than the ring of the tills.
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“The new year will lead retailers to invest more in multichannel capabilities and many will use the quieter first quarter to do just that, or face the prospect of losing out further.”
LCP Consulting retail partner Stuart Higgins agreed retailers need to invest urgently in building Omni-channel capabilities.
“Retailers must integrate effectively with suppliers, deliver consistently to consumers and provide strong financial results for their business,” he explained. “They also need to understand that supply chain fulfilment capabilities and readiness are integral to the brand experience and must deliver consistently against the brand promise – irrespective of the time of year.”
LCP identified a number of factors for retailers to address including operating models, channel economics, distribution and fulfilment networks, inventory and range deployment and returns.
LCP Consulting retail partner Phil Streatfield said: “Tackling these issues will enable retailers to respond to the consumer expectation of successful last minute delivery, the ‘where and when I want it’ mentality, combined with shorter delivery times and reduced prices. If they do this they will be well-positioned not only for next Christmas, but for today’s constantly evolving market-place.”
