This week: High Street Sales Up & Overhead Reductions.

Oct 11, 2020

This week: High Street Sales Up & Overhead Reductions.

Apart from my weekly grocery shop with two laden shopping trolley's for the five of us, which I utterly dread each Saturday, we did some high street shopping this week.

It was packed!

I popped into Mint Velvet to get some smart clothes for work and they had a strict 3 garment policy for trying anything on; as if you don't buy it they hang it up for 24 hours before letting it go back out on the shop floor. Also, you have to wear a mask *and* there are a maximum number of people allowed in the store.

Result? People queuing to get into the store, people queuing to try clothes on and the customers and staff all irritable with the restrictions and face shields.

And yet... we all put up with it. Somehow, trying before you buy just hasn't lost it's own fashion yet.

This is reflected in recent statistics, published yesterday.

Online sales dip again as in-store reaches highest level since February

"Online retail sales continued to fall gradually from peak levels in September, going up by 65.1% on a like-for-like basis, according to BDO’s* latest High Street Sales Tracker.

This was the third consecutive month-on-month reduction, following like-for-like increases of 72.4% in August and 81.2% in July. In June, May, and April, online sales grew by more than 100%. This indicates that increasing numbers of consumers are returning to the high street, although eCommerce is still performing far stronger than pre-lockdown."

This said, orders with suppliers are lower than usual with the nervousness surrounding the imminent changes in view of the threat of a second wave.

It is an uncomfortable truth that this will of course in turn increase online sales once more.

Plans for 2021 are being made already. Many retailers, who have their own warehouse premises, are making the difficult decision to reduce overheads and outsource their fulfilment instead of operating their own warehouses. I've noticed this with the enquiries we've been receiving and have even been invited to quote for Coca Cola!

Quite a crazy roller coaster we are all on...

It's a pleasure being on it with you :o)

Sam.

*BDO or Binder Dijker Otte is an international network of public accounting, tax, consulting and business advisory firms which perform professional services under the name of BDO. You can read the whole article -> here <-



Category: News

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