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The Christmas Crush does not necessarily mean Gold Rush...
Monday, 8 December 2008
So according to Moneysupermarket.com today is going to be a record on line sales day with over L320 million worth of purchases. Whilst traditional retail high street stores are having a torrid time in 2008 the online bandwagon is gathering momentum.
Granted some traditional retailers have embraced the online world and thus are protecting their share in the market place but a worrying phenomenon is occurring across our towns and cities in the uk which could change the way we measure the success of our marketing campaigns forever.
In previous years in the UK we look to two key indicators to the strength of the marketplace. These have been footfall and total sales. We then break them down into spend per head (or basket value) or number of items bought.
Traditionally these two key performance indicators track together, i.e. the more people you get into the store the more sales you get. However these are strange times, we find ourselves in a global recession and the prophets of doom and gloom expect people to pull the purse strings if not for Christmas but certainly in January for the sales when those credit card statements start landing.
However the one worrying new trend that we are seeing and challenges how we measure the success of businesses and indeed the very future of the retail stores is the breakdown of the footfall leads to sales relationship.
Over the last two weekends I have personally seen and spoken to many consumers who are out Christmas window shopping in our stores across the country. These people really are virtual customers and are using the web to maximise their savings.
I have seen young families trawling the high street stores sampling the latest must have goods, compiling their wish lists, even taking pictures with their camera phones of prices and specs. And then they simply go home and search web on price to make the purchase.
For years Retailers have said if they could be the last store the consumer visits they would be guaranteed the sale and now the web has achieved this but at what cost?
It wont be long before the hight street stores realise they are being treated as a free tourist information attraction and start to combat this new virtual customer practice. Dont be surprised to see photos and even pens and paper banned in store, and even heaven forbid an entrance fee to enter a store redeemable against the goods purchased.
The very fabric of what makes the stores so attractive over the web is the accessibility og the goods and retail experience but if they cannot monetise these vistors then they will have to adapt.
So it would appear footfall is strong in the high street but sales are not and whatever the media say this has nothing to do with our recession, it is a changer in the consumer purchasing process.
May I take this opportunity to wish you a Merry Xmas and a Happy New Year.
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