Retailers with a strong online presence are emerging as the winners in the
competition for Christmas sales, judging from festive trading figures released
in January.
Wine merchant Majestic’s online sales increased by 30 percent this Christmas
and now account for seven percent of turnover. John Lewis reported an increase
of 60 percent in online turnover, while web fashion retailer EBTM said its sales
were up almost fourfold in the six weeks to Christmas.
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“A good level of customer service and a simple system for returning goods are
important,” said EBTM chief executive Richard Breeden. “Successful [online]
retailers must tick these boxes to have a chance.”
Tesco.com, meanwhile, reported 1.3 million customer orders in the four-week
run-up to Christmas, an increase of around 30 percent on 2005.
Predictions from industry body the Interactive Media in Retail Group (IMRG)
valued internet sales in the 10 weeks leading up to Christmas 2006 at £7.5bn, an
increase of more than 40 percent over the previous year.
The importance of the internet as a sales channel for high-street traders was
highlighted by Next. Its online sales rose 9.3 percent in the period from 31
July to 24 December, while its shops saw a 6.9 percent fall in sales.
Other high-street names suffered because of online competition. HMV and
Woolworths both issued profit warnings, while music and film specialist
MusicZone filed for administration.
Bruce Townsend of e-commerce specialist Actinic advised smaller merchants to
offer more niche products and boost their online presence with “simple, fast and
easy-to-use web sites” in order to survive.
But new research from security specialist Trend Micro revealed that despite
the continuing rise in online shopping, only around half of consumers are fully
confident in the safety of the internet. The Internet Confidence Safety Survey
reported that similar numbers were unconvinced about their internet security
software. “Vendors should continue to educate users about the potential risks
involved in online shopping,” said Trend Micro’s Pat Dunne.
In separate research Forrester Research analyst Reineke Reitsma advised
online retailers to reassure visitors by ensuring they clearly display their
security measures on the home page.
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