News survey reveals tough conditions on the high street
November produces negative retail growth statistics as consumers shy away from the high street
A survey out today reveals another month of negative sales growth has led to analysts predicting the UK high street may see further names fail in the next couple of months. The level of promotions is on a par with the “panic sales” of 2008 and while this year’s promotions are largely more structured and considered, this is likely to have an impact on margins. The effects of a combination of reduced margins and low sales will come as retailers approach Christmas more in hope than expectation. Moreover, the weather is set to take a turn for the worse this week and with more people feeling a pinch in their pockets, online shopping sales have surged as people shy away from Britain’s high streets.
The UK online retail market is growing at a rate of 14% year-on-year, with Britons spending an estimated £5.9bn shopping on the internet. The online retail sector grew 9.4% in the month of November alone, contrary to the consumer austerity demonstrated on the high street.
Kevin Flood, CEO of the UK’s largest online shopping platform Shopow (www.shopow.co.uk) sheds some light on spending patterns; “The figures indicate that consumer confidence continues to have a significant impact at the tills and the news of rocketing inflation won’t do much to encourage shoppers to recommence their spending. As consumers take to social media to connect with brands and share experiences, retailers need to adapt accordingly. Although, it remains obvious that we all face yet another major recession Christmas
“The pressure is on the retailers in the approach to Christmas as many are finding that more aggressive discounting is necessary to prevent what could be a difficult season. Although the high street is severely being tested, we are expecting an encouraging next couple of months online with many stores embracing a multi-channel approach across mobile, online and in-store.
“With purse strings tightened, shoppers are using social networking to share the deals and discounts they have discovered. The retailers who make social shopping accessible will benefit from natural, word of mouth exposure. This Christmas will be the biggest internet shopping season on record”
Shopow is a new revolutionary site that has launched at www.shopow.co.uk.It is the first Social shopping search engine in the UK and is powered by the impartial reviews and experiences of users; allowing them to make an informed choice about their purchases. The visibility for businesses of all sizes gives shoppers access to a greater range of retailers and products than ever before.
Shopow was conceived in October 2009 as the brainchild of Kevin Flood and Mike Harty – two budding entrepreneurs fresh out of university. Both graduated from the University of Leeds with degrees in BA Management and quickly began to use their skills to pursue success in the real world of business.
