Retailers which operate physical store networks as part of a multi-channel strategy are not only outpacing traditional retailers but also those with an online presence only, according to research from CBRE.
Growth of pure online and mail order sales grew more slowly than expected in the final quarter of 2012 (Q4 2012), at 6% in the 27-state European Union, and 0.4% in the eurozone.
Yet sales growth for retailers with an online and physical store presence was considerable. In Italy, for example, online sales from pure online/mail order retailers rose by just 1.9%, against growth of 10% for total online sales.
CBRE said comparisons could also be made at company level: Amazon posted a 20% growth in online sales for Europe in Q4 2012 which is significantly lower than the 44% growth in online sales recorded by John Lewis.
Neville Moss, head of EMEA Retail Research CBRE, commented: ‘The prolonged period of low economic growth combined with structural change in the retail sector is creating a new hierarchy, with high quality multichannel retailers gaining considerable market share.’
'However, those retailers that operate store networks are experiencing significantly more growth than many retailers that only sell goods online. While consumers are becoming increasingly savvy when purchasing goods online, a brand that is instantly recognisable on the high street or in a shopping centre creates brand awareness and breeds trust in the consumer.'
He added that the vast majority of European retailers currently see themselves primarily as 'bricks and mortar retailers'.
Moss: ‘But we predict that in two years’ time a similar proportion will have converted into fully integrated multichannel businesses.’
