The British Retail Consortium and KPMG have confirmed what the team at marketplace managagement software specialists Seller Dynamics have known for some time, in short the high street is struggling to grow while the online retail world flourishes.
The Retail Sales Monitor release from the duo can be found here.
High Street sales, certainly in the capital have been impacted as stay at home sports fans watch the medal winning performances from around the world rather than go shopping.
But across the UK retail sales by value could only manage an increase of 0.1% on a like-for-like basis from July 2011.
Online, however, shows a significantly different story. The report includes mail-order and phone sales with online web sales and excluding non-food items growth was up 15.6% against growth of 9.6% for the previous year.
Stephen Robertson, Director General, British Retail Consortium, said: “July was clearly not a golden month for retail. Like-for-like sales were virtually flat compared with a year ago and total growth of two per cent was still behind inflation as consumers, dealing with squeezed budgets, prioritised their spending on essentials.”
Helen Dickinson, Head of Retail, KPMG, said: “It’s a real challenge for retailers to grow sales and many are only achieving this at the expense of margins.”
At Seller Dynamics we can see the importance of margin management and have sympathy for retailers puched into highly competitive situations. In the online world margin management is essential especially when selling on the various marketplaces such as Amazon and Play. But without making use of marketplaces e-tailers are likely to suffer badly as potential customers pass them by, thats why the online marketplace management software service we offer is so important. Managing margins expertly will let your business grow.