A surge in online retail sales, caused by the bargain hunters, has badly affected high street sales of those stores which do not conduct online business.

Not withstanding the recession, online spending increased by 16% in November compared with the same period last year, as per the IMRG Capgeminie-retail sales index. October sales were also up by 26% when consumer confidence was at its lowest due to banking crisis.

An independent survey by Experian revealed that average drop in retail footfall was 9.1% at the weekend; fall in Saturday’s high street sales was 13.2% and Sunday’s 4.99%.

According to directors at IMRG, high surge in November’s online sales was mainly caused by aggressive discounting offered by e-tailers, matching with those of retailers’ like Mark & Spencer’s one-off sales online and in stores; and customers’ increasing check of online prices before purchase of goods and products.

According to IMRG chief executive, James Roper, it was not unusual to witness increase in online sales around end of the year due to festivities, but it was quite surprising that growth was continuing throughout the year in spite of difficult conditions for retailers. This indicates that high street retailers should now diversify their business by embracing online sales to preserve and expand their customer base.

Online sales of handbags increased by 108%, clothing sales were up 18% and footwear sales jumped by 32%. Beer, spirits and wines recorded 53% rise in sales.

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