When ASOS issued a profit warning just prior to Christmas due to poor online sales in November, many feared that this year was going to be a tough period for eCommerce retailers. With Black Friday falling in that November period, did this mean that other retailers would reflect the performance of one of the UK’s leading eCommerce lights? Was the Brexit effect having a tangible effect on sales and profits?
A good indicator of general retail performance is always how early stores, in the high street and online, switch into the sales period. Long gone are the days of sales starting on Boxing Day. Even in stronger economic times of a few years ago, many online retailers (Amazon in particular), would launch massive promotional campaigns on Christmas Day itself. No sooner had presents been opened than we were busily seeking bargain replacements!
But with some of the big guns such as Next and John Lewis holding off launching sales some confidence grew that the general economic concerns weren’t hitting online sales as much as predicted.
Reports from Next and John Lewis however, have both showed good online sales over the period. Next overall sales were up 1.5% on 2017, but online sales were up a whopping 15.2%, taking many ecommerce analysts by surprise. John Lewis’ figures were up 4.5% in the week to 29th December, but as no separate online figures were released, it’s less easy to assess.
So what can we learn? That online sales, done well, are forging ahead despite uncertainties in the economy and high street concerns.