Despite decreases in retail spending, Amazon has had a strong year in sales, with data revealing it’s now among the five biggest retailers in the UK.
Amazon has had another strong year of sales in the UK, with the online giant becoming the fifth largest retailer in the country, according to the latest figures from GlobalData.
Spending on the UK site rose by 22.5 percent in 2017, despite the region’s online spend only increasing by 8.4 percent. In total, it’s estimated that Amazon sales accounted for 33.5 percent of the UK’s total online shopping revenue, a figure that was sitting at 29.6 percent just 12 months earlier.
Research from GlobalData reveals Amazon is among the top 5 retailers in the UK.
According to Senior Retail Analyst, Sofie Willmott, Amazon is accounting for a large portion of the country’s e-commerce growth.
“Amazon is soaring up the ranks of UK retail with the online behemoth only held off the top spot by the big four grocers in 2017,” she says.
Unlike its biggest competitors in the UK, Amazon sells primarily non-essential items, which Willmott believes is a testament to the company’s overall business strategy.
The retail industry’s growth forecast is expected to be limited over the next five years, with Willmott claiming e-commerce brands like Amazon will need to focus on customer experience to succeed.
‘‘It is imperative that retailers continue to give shoppers a reason to visit and purchase from their own sites, such as exclusive products or loyalty rewards, to maximise profits and consolidate their place in the market,’’ Willmott says.
Recent research from Deloitte shows that retail spending in Australia might also be about to hit a slump, as wage growth is at an all-time low and the population continues to age. This has been reflected in the retail sector’s backward price growth, with clothing and footwear proceeds tumbling by three percent and household goods by 0.8 percent in the last year.
This will make the need for customer loyalty programs and incentives, such as the pending release of Amazon Prime a big area of focus for Australian multichannel and pureplay brands.
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