Flint Bishop

Christmas Retail Update: Digital channels increase in influence, but the retail experience still remains in store for the East Midlands

Over half of all general merchandise retail sales will be influenced by the internet this Christmas, according to business advisory firm Deloitte. The firm's latest multichannel research, published this week in the Deloitte Consumer Review, predicts that the internet will influence around £9bn of non-food sales across the UK over the festive period.

However, in the East Midlands, 79% of purchases (by volume) are still made by physically visiting stores - an even greater percentage than the national average of 72%. Just 13% of items in the region are now purchased directly online, tracking just below the national average of 16%.

Multichannel transactions - where consumers interact with retailers across a number of touch points including stores, online, social media, peer reviews and smartphone or tablet apps - currently account for 8% of all purchases in the East Midlands (just two-thirds the national average of 12%). Forty eight per cent of East Midlands consumers shop online, with 46% using price comparison websites and 25% using review forums to research products prior to purchase.

Vijay Thakrar, Partner at Deloitte Nottingham, comments: "Consumers have embraced digital media and are increasingly confident about interacting and transacting online. With trust in traditional sources of influence decreasing, they are turning to their peers or communities online for advice and to share information and opinions. Furthermore, the current economic climate is accelerating the rate at which consumers are adopting digital behaviours as they rebalance their spending and turn to digital solutions to seek out savings and value.

"However, regional breakdowns still show a loyalty to local retail destinations and experiential shopping. Big ticket items, such as furniture and high-end fashion, are most likely to be multichannel as consumers carefully research the market place before purchase. The influence of online will continue to grow but physical stores will remain an essential part of retail. I think we will eventually see the emergence of a more seamless experience for consumers, with smart devices accessing a 'personal cloud' that enables the organising, synchronising and sharing of information with friends, family and favourite companies."

Jo Tallack, general manager of Highcross Leicester, comments "We recognise that online provides a convenient way to make day-to-day purchases but it is no substitute for shopping as a leisure pursuit. Many people shop as a pleasurable pastime and centres such as Highcross provide a great destination for people to shop, dine and socialise with friends and family. This is shown by the growth of our restaurant offer (in double-digit growth this year) and Cinema De Lux.

"Christmas is a particularly special time of year to participate in the shopping experience. At Highcross, we have a Grotto and local choirs to provide a festive atmosphere, something that online shopping cannot replicate."

 

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Article published by Midlands Business News on 13 December, 2011

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