It has been revealed this week that High Street retailer Next’s sales have dropped by 1.7% this year, however the store is recovering from the poor results through a surge of online sales in recent months.
Research suggests that customers prefer shopping online rather than from the stores on the high street, which would explain why the company had an 15% increase in sales from Next directory online service.
The resilience of eCommerce allows Next to get clearer overall results, which means sales increased of 3.2% in the first half of this year. Where as the high street sales have dropped this could lead to major problem for the company down the line. A study shows that at the moment the main reason people prefer safe shop online to popping down to there local high street is the price of the products, which can be much lower online compared to the High Street.
Lord Wolfson, boss of the multi chain store, explained that while eCommerce and catalogue sales were definitely on the rise, it would be difficult to conceive of a time at which the company did not make a majority of its sales via the high street. Originally Next had forecast a little 1.5% sales increase, thought out the first six months of 2012, but its major rise came by eCommerce purchasing this was the main contributor to its more than double of the predicted growth rate. If other chains want to survive, they will have to take Nexts lead over the coming months.
A primary focus of any business should be to keep up to date with changing consumer habits, such as the boost in eCommerce asales and technology. For more information on the services which Visualsoft offer, including eCommerce and online marketing tailored for eCommerce stores, contact one of the team today.