Mon, 23rd February 2009

Retail planning for e-christmas 2009

Christmas 2009 is going to be a difficult time and e-retailers are already beginning to plan stock and quantity levels.

However planning has never been more important and difficult than it is in the current economic climate. eDigitalResearch and industry trade body IMRG (Interactive Media in Retail Group) are providing a helping hand with the results of their latest e-retail customer service index (e-csi), which sees customers already predicting what, when and how they plan to spend their money during this time.

Over 60% of people turned to online retail last Christmas when sourcing their presents and this is set to grow, with two-thirds of consumers intending to spend more online and start their shopping earlier: "These results are very positive and confirm what online retailers are claiming. More and more people are embracing online and it is only going to get better for e-retailers in 2009," comments Director of eDigitalResearch, Chris Russell.

"Christmas 2008 witnessed a predictable increase in people using the internet but this research demonstrates that they were not only using it to research the best price, but also to buy their products of choice, demonstrating a shift in consumer confidence. The recent news that Woolworths is to be revitalised online is a perfect example of how traditional retailers should or could switch to online and not just for one part of their business, but every area, as Tesco has recognised with the launch of its online clothing store." James Roper, Chief Executive for IMRG adds: "Online shopping comes into its own at Christmas as the primary trade route for millions of people who have so much to buy and organise, as well as now being on tight budgets. With most e-retailers underestimating demand last year, stock ran low or empty, which lost vital sales and fed into competing retailers. This research shows that playing it too safe may again be the most risky stock-level strategy this coming Christmas. Consumer's intentions for the internet are far bolder that the Government's current watery plans for Digital Britain. So while the Government may be struggling to figure out what to do about the internet, shoppers are just getting on with using it, and to make it through the bleak economic climate, so must retailers."

Chris concludes: "Consumers are spending more online, and this surge in traffic means that e-retailers have a massive opportunity to capitalise on the increased attention they are experiencing. If they don't, then they will be missing out on a chance to build customer loyalty and repeat business, something no organisation wants to do in economic times such as these."