Internet presence brings Christmas cheer

Clicks and mortar e-commerce firms beat the high street at Christmas selling

Retailers with a strong online presence are emerging as the winners in the competition for Christmas sales, judging from festive trading figures released in January.

Wine merchant Majestic’s online sales increased by 30 percent this Christmas and now account for seven percent of turnover. John Lewis reported an increase of 60 percent in online turnover, while web fashion retailer EBTM said its sales were up almost fourfold in the six weeks to Christmas.

“A good level of customer service and a simple system for returning goods are important,” said EBTM chief executive Richard Breeden. “Successful [online] retailers must tick these boxes to have a chance.”

Tesco.com, meanwhile, reported 1.3 million customer orders in the four-week run-up to Christmas, an increase of around 30 percent on 2005.

Predictions from industry body the Interactive Media in Retail Group (IMRG) valued internet sales in the 10 weeks leading up to Christmas 2006 at £7.5bn, an increase of more than 40 percent over the previous year.

The importance of the internet as a sales channel for high-street traders was highlighted by Next. Its online sales rose 9.3 percent in the period from 31 July to 24 December, while its shops saw a 6.9 percent fall in sales.

Other high-street names suffered because of online competition. HMV and Woolworths both issued profit warnings, while music and film specialist MusicZone filed for administration.

Bruce Townsend of e-commerce specialist Actinic advised smaller merchants to offer more niche products and boost their online presence with “simple, fast and easy-to-use web sites” in order to survive.

But new research from security specialist Trend Micro revealed that despite the continuing rise in online shopping, only around half of consumers are fully confident in the safety of the internet. The Internet Confidence Safety Survey reported that similar numbers were unconvinced about their internet security software. “Vendors should continue to educate users about the potential risks involved in online shopping,” said Trend Micro’s Pat Dunne.

In separate research Forrester Research analyst Reineke Reitsma advised online retailers to reassure visitors by ensuring they clearly display their security measures on the home page.