Blog Post - Patrick Munden, Aug 18 2016

Amazon Prime Day 2016 an online catalyst for the industry!

Amazon Prime Day 2016 an online catalyst for the industry!

We have seen a significant rise in online sales in July, with the average weekly spend increasing by 16.7% to £963.8 million, compared with the figure in July 2015 which was £827.1 million. The ONS statistics also highlighted a month-on-month increase in online sales with July boasting a 1.2% increase on June, reinforcing the rise of online and mobile shopping across the year and not just the usual peak trading periods. In fact, Amazon’s Prime Day - the biggest day ever for Amazon with 60% more sales than 2015 - may have been a contributor to this growth across the whole of online retail. It’s certainly and firmly planted the seed for online shopping during what would otherwise have been a quiet holiday month.

Last year’s Black Friday was when we saw a real shift in consumer attitudes, and online shopping is becoming increasingly favoured among consumers as the go-to trustworthy platform. If retailers are to keep abreast of this wave, they need to react to the market and digitise their whole business strategy – mobile, tablet and other devices. Retailers that are online, but maintain a high-street presence, need to ensure they provide consumers with a successfully integrated multichannel offering. They need to provide immediate services like click-and-collect, have fully operating online sites, and everything must draw back to a robust digital strategy. Otherwise, retailers risk losing consumers, brand trust and market share to more digitally savvy competitors.