The Bank of England has raised interest rates to their highest level in almost a decade as the economy has stabilised. However, the retail sector could experience negative consequences linked to the rates increasing from 0.5%, where they’ve been set since 2009, to 0.75%.
According to Retail NI Chief Executive Glyn Roberts, the new interest rates could see retailers struggling even more amid an already challenging environment. Due to weak consumer spending, decreased retail footfall, and turbulence within the retail industry, he argued that the increase was ‘premature’ as the UK economic recovery is still ‘sluggish’.
Online Retail Boosted by Seasonal Spending
Despite early signs of a slowdown, the UK’s online retail sector has been performing well, according to the latest Capgemini IMRG e-Retail Sales Index.
Boosted by seasonal spending, UK consumers increased their online shopping by 15.3% year-on-year in the first quarter of 2018 and by 18.2% in the second quarter. The uncommon weather, both at the start of the year where temperatures plummeted and the exceptionally sunny weather in June, drove up clothing sales by 17.1%, while the World Cup had a positive impact too. The research also highlighted the importance of offering an omnichannel shopping experience, with spending via smartphones jumping by an impressive 39% in Q2.
Read the full story here: https://www.research-live.com/article/news/online-retail-boosted-by-seasonal-spending/id/5041913
73% of Consumers State Email is Their Preferred Marketing Channel
Despite GDPR affecting marketing communication, a new report has revealed the email is still the preferred option for consumers wanting to receive updates and promotions from brands.
Almost three-quarters of consumers stated they favoured email, compared to 22% for social media, 22% for text messages, and 18% that cited banner ads. Face-to-face marketing, messenger apps, and phone alerts fared even worse, indicating that retailers can benefit by focussing their efforts on email. Another interesting statistic from the study found that only 37% of interested consumers clicked on a link in a message; instead almost half preferred to go directly to the company website – clearly demonstrating that click-through rates aren’t the only metric to consider.
Read the full story here: https://performancein.com/news/2018/07/27/73-consumers-state-email-their-preferred-marketing-channel/
Retail Warehouses Fight Off Fears from Online Shopping Industry Amid Strong Growth
The UK’s retail warehouse sector has grown faster than any other commercial property sector over the last three decades, thanks to the rise of online shopping, a report from Savills has demonstrated. Since 1980, the sector has posted enviable annual growth rates of 11.5% despite other areas of the retail industry struggling to operate in difficult market conditions.
However, despite the findings, Savills stated there was ‘very little evidence’ to support the argument that online retail is more profitable than its traditional bricks alternative.
Read the full story here: http://www.cityam.com/290051/retail-warehouses-fight-off-fears-online-shopping-industry