Multi-channel retailers outperform pureplays on mobile devices
New research has shown that multi-channel retailers with a physical store presence achieved stronger growth in m-commerce sales during the first half of 2014 compared with their online-only counterparts.
The study by IMRG and Capgemini found that the multi-channel merchants recorded 79% year-on-year growth in sales via smartphones and tablets from January to June this year. This compares to growth of 59% for online-only and catalogue retailers in the period.
In addition, the multi-channel retailers saw a sharp rise in m-retail conversion rates with the average rate rising 33%. In contrast, online-only and catalogue retailers experienced a slight dip in rates.
However, the data also reveals that mobile shoppers spent slightly more with pureplay online retailers at £82 per transaction, compared with an average of £80 for merchants with a physical store presence. The average m-retail basket value rose by 8% in the year-to-date for the online-only retailers, while the multi-channel merchants recorded a 5% rise compared with the first half of 2013.
Never Miss a Retail Update!A separate study by IMRG found two-thirds of retailers have a mobile-optimised website. However, a higher proportion of high street multi-channel retailers have optimised their site for mobile (74%), compared with 53% of online-only and catalogue merchants.
Tina Spooner, chief information officer at IMRG, said: “While both the pureplay and multi-channel merchants appear to be on a level playing field in terms of overall online growth, we do know that the latter group are ahead in terms of mobile adoption. Around three-quarters of multi-channel merchants now have a mobile-optimised website, compared with just over half of online-only / catalogue brands.
“Inevitably, we are seeing an overall slowdown in m-retail as growth comes off a higher base. However, with an increasing number of consumers now using their mobile devices to browse and compare products while in-store, there is no doubt mobile will continue to be an integral part of retailers’ multichannel strategies.”
Alex Smith-Bingham, vice president, digital services leader at Capgemini, added: “It would appear that the multi-channel retailers, which have been investing in their mobile platforms, have a larger opportunity than their pureplay counterparts as mobile is not only an additional sales channel but can also drive greater engagement and sales in-store.”
