High street stores suffering from online sales

High street stores are suffering against online retail sales, suggesting that stores that do not have an online presence will be missing out this Christmas.

Despite fears of a credit crunch christmas, online spending surged by 16 per cent in November compared with the same time last year, according to the IMRG Capgeminie-retail sales index. Last month’s sales were also up by 26 per cent on October, when consumer confidence took a blow from the fallout of the banking crisis.

In a separate survey, Experian found that retail footfall dropped by an average of 9.1 per cent at the weekend; Saturday’s high street traffic fell by 13.12 per cent and Sunday’s by 4.99 per cent.

Directors at IMRG said factors driving November’s online sales surge included e-tailers matching the aggressive discounting of retailers, such as Marks and Spencer’s conducting one-off sales in its stores and online; and customers increasingly checking prices online before purchasing.

James Roper, chief executive of IMRG, the global industry body for e-retail, said: “While we would naturally expect to see a monthly increase in online sales at this time of the year, it is perhaps surprising that we are continuing to see yearly growth during these otherwise difficult times for retailers. This is a sure sign that high street retailers should look to diversify their activities by embracing the online space, as their customers have.”

David Smith, IMRG operations director, said: “I am amazed that Gap, for example, does not yet have a transactional website. It must be hurting them.”

He concluded: “Undoubtedly, the overall retail cake has shrunk and the internet is now getting a slightly bigger piece of the cake. What we are seeing is that the internet is really coming of age for the consumer.”

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