Ecommerce grew more slowly than expected in December as Black Friday encouraged more shoppers to do their Christmas shopping the previous month – and discouraged others from buying gifts online, a new study suggests.
The BRC-KPMG Online Retail Sales Monitor for December 2014 found that non-food online sales grew by 7% in December, and accounted for 17% of all sales during the month.
That contrasts with December 2013, when online sales grew by 19.2%. It’s also down compared to the previous month, November 2014, when ecommerce grew by 12% and claimed 21% of all sales during the month, according to the BRC. That was the biggest share of the market yet recorded for internet retailing.
David McCorquodale, head of retail at KPMG, said the delivery fallout from the Black Friday peak had hit confidence.
Nick Fletcher, Director of Service Strategy at Rakuten Marketing Europe comments:“Online sales still saw growth, but the battle of the brands over Black Friday and pre-Christmas discounting meant that retailers didn’t get the bumper December they hoped for.
2As a result, brands should be focusing on building brand loyalty to ensure they are the retailer of choice not just at Christmas, but all year round. Using data, retailers can make better decisions about how to target customers, appealing to them with personalised offers and rewarding return custom.
“For example, by implementing a retargeting campaign, brands can reach customers based on what they have already purchased. If a shopper bought a dress as a Christmas present, a retailer could follow up with offers for a matching coat. It’s clear that discounting kept shoppers spending this year, but partnerships that enable retailers to offer good value, for example, cashback or voucher deals, can be a more effective way of retaining loyal customers in the long term. Cashback incentivises people to purchase, (rather than just raising awareness) and fosters loyalty too because shoppers feel they are getting something back.”