A shift toward online shopping during the holidays

Around the world, the last two months of the year often represent the biggest boom for retailers and shops, large and small, across nearly all industries.

Department stores, high-end product suppliers, and niche gift shops prepare months in advance for the influx of shoppers slated to enter their doors each festive season. However, the last few years has trended down for British high street shops, despite a noticeable increase in the amount spent during the season and the cost of goods going up.

Online shopping has made it easier to fulfill wish lists and gift ideas for family, friends, co-workers, and service providers for millions of Brits. Instead of visiting high street, opting for buying what is needed or wanted in the comfort of one’s own home has overtaken the economic viability of brick-and-mortar locations. This year, Brits an anticipated to spend more than in years past, and an even greater percentage of that hard-earned money is going toward an online shopping experience.

The State of Shopping for Brits

Throughout 2017, a survey from Ipsos MORI highlighted the fact that e-commerce is a growing environment for British shoppers. More than 3,000 consumers shared that among them, 22% shopped online at least once per week, but that has now increased to 26%. Nearly 68% stated they shopped online once per month, averaging a spend of 250 euros over a three-month period. But during the festive season, these numbers drastically change.

According to Adobe, online shopping predictions for the 2018 season between November and December has hit record highs, jumping by 25% compared to 2017 estimates. Shoppers in the UK will spend more than three times as much as those in France and Germany, but spending amounts are continually on the rise. The average UK consumer is set to spend more than £2,000 – an increase of 5% from the previous year. While these statistics continue their climb, high street shops are feeling the pinch.

During November of this year, high street store sales fell significantly, declining by 3.2% compared to 2017 statistics. Retail analysis shows that the total decline may be 4.2% by year-end, despite a strong spending habit among Brits. Sales are shifting online at a rapid pace, for a handful of reasons that keep high street shops on edge.

What’s Fueling the Change?

Physical store locations are losing UK shoppers right and left, for reasons that aren’t all that shocking. First and foremost, online shopping presents an opportunity to pick and choose the items one wants without the hassles and headaches of visiting a store in the flesh. There are no lines to wait in, no crowds to navigate, and maybe most importantly, no sales pressure from in-store associates.

Building on these benefits of online shopping is the ability shoppers have to evaluate their options among multiple retailers and stores. Leading price comparison websites give shoppers opportunities to spend money in a smarter, more strategic way, utilising the comparison of prices of the same products at several different stores. The information gathered by these sites is not only helpful from a cost perspective, but there may also be reviews of the products available at the shopper’s fingertips. These advantages give shoppers the upper hand in selecting where and how to buy what they want, all through an easy, fully digital experience.

Finally, the online shopping experience used to lag significantly in its return and refund options for consumers. Now, however, the ability to simply ship items back to the store, in some cases at no cost, is becoming the norm. Shoppers know that if they aren’t happy with a purchase, they can send it back as easily if not more conveniently than returning to a high street shop for the same purpose. These elements of online shopping show no signs of slowing down, nor do the number of shoppers taking advantage of the convenience and comfort factors fueling e-commerce growth.

A Look Ahead for Retailers

Over the next several years, the expectation is that online shopping, particularly throughout the last two months of the year, will continue to trend upward. High street shops, despite the experience they provide to shoppers, are finding it more and more difficult to keep up with the impressive amount of digital retailers coming into the fold each day.
Brits have more options than ever before when it comes to price comparisons, deals, and discounts, alongside easy returns and quick refunds. This all means the digital shopping experience is here to stay, potentially at the expense of brick-and-mortar shops.