Research article

Recording of online sales at store level

Gyms, cinemas and leisure dominate compared with retail categories

A third of store managers overall (34%) said they recorded online sales.

There were wide variations between categories – particularly in those categories where online sales are becoming more integral to performance and mirrored the structural changes taking place within these categories.

Gyms and Cinemas were most likely to record online sales (91% and 83% respectively). Although the number of outlets in these categories formed a small part of the sample, all bar one in each category recorded online sales. The ease of purchasing gym passes and membership online (as well cinema tickets) is clearly visible here. In addition, the increasing trend for unmanned gyms and cinemas lends itself to online bookings.

Bookmakers (8%), Opticians (10%) and Fast Food / Takeaway (14%) were least likely to record online sales. In the case of Bookmakers, there has been a move towards fewer betting shops in addition to a thriving online betting market which, if captured within the realm of a store, would likely boost store sales significantly.

In terms of Opticians, a purchase is likely to have been made as a result of a personal consultation with a professional in-store rather than an ad hoc purchase made online.

On a geographical level, stores in the South East were most likely to record online sales (38%) with stores in Scotland least likely (29%).

Figure 1

FIGURE 1Does your store record online sales?

Source: Savills Research

Are stores credited for online sales within the catchment / region?

Many retailers credit a sale made online to the nearest store in the local catchment. This can be a way of acknowledging the store’s role in the purchase process and can help to boost sales – considerably in some instances.

On average, one in five stores said they were credited for online sales within their catchment.

Gyms, Cinemas and Grocery retailers were most likely to be credited (half of stores within each category).

Fast Food / Takeaway, Jewellery and Accessories stores (all 7%) were least likely to be credited for online sales. This was closely followed by Travel, Opticians and Bookmakers (all 8%). For some of these categories (Jewellery, Opticians), the ability to either examine goods at close proximity and/or have face-to-face interaction with staff is crucial in the purchase process.

Travel (similar to Bookmakers) has seen a major shift to online purchases which, if credited to the store, could boost performance significantly.

However, 11% did not know whether they were credited for online sales. In particular, 40% of stores in the Music, Books, Games category said they did not know whether they were credited with online sales in their region.

South East stores were most likely to be credited with online sales (26%) and nearly twice as likely as stores in the North East (14%). With stores in the South East most likely to record online sales, there appears to be a correlation in terms of stores being credited for online sales in this region.

Figure 2

FIGURE 2Percentage of stores credited for online sales within the catchment / region

Source: Savills Research

What proportion of store sales come from online?

On average, 10% of store sales come from online.

Cinemas had the highest proportion of sales from online (35%), more than twice the amount of the next categories. The merging of online and physical sales has clearly been embraced here more than in any other category. Electricals and Homewares (both 16%) and Jewellery (15%) had the next highest proportion of store sales from online. This is despite being among the least likely to be credited for online sales in their region.

Value / Discount retailers had the smallest proportion of store sales from online (1%) followed by Confectionery (3%), Sporting Goods and Menswear (both 4%). Interestingly, the latter two categories were among the most likely to be credited for online sales in their region. This suggests that these categories may be separating out sales from the different channels.

London and Home Counties stores had the highest average sales from online (16%) – this is despite being the region second least likely to be credited for online sales (17%).

Conversely, only 5% of sales in stores in Northern Ireland came from online despite being among the most likely regions to be credited.

Figure 3

FIGURE 3Percentage of store sales from online

Source: Savills Research

Are online sales included in stores sales figures?

Looking at the 34% of the overall sample that recorded online sales, nearly two thirds of these said they included online sales within their store sales figures.

This meant that 22% of the overall sample included online sales within their store sales.

Of those stores in the Restaurants category capturing online sales, 92% included online sales in their sales figures (or 42% overall). Similarly, despite only 23% of cafes capturing online sales, more than 8 out of 10 of these units included them in their store’s sales figures (or 20% overall).

The introduction of the likes of Deliveroo, which has significantly boosted online ordering at Restaurants, as well as the major coffee shop chains allowing drinks to be ordered online prior to pick up, has seen these categories consider online and click & collect sales as an opportunity to increase store sales.

Mobile Phone retailers were least likely to include online sales figures in their store sales (26% capturing online sales, 8% overall). The Jewellery category was next least likely to record online orders (35% capturing online sales, 8% overall). Again these are categories where in-store service as well as the ability to examine products up-close is important.

On a regional level, 65% of stores in the South East recording online sales (or 25% overall) were likely to include these sales in their store figures. North East stores (18% overall) and stores in Scotland (20% overall) were least likely to include online sales at store level.

Again, it would be difficult to comment on the regional strategies of retailers; however there is perhaps an opportunity to boost store level sales figures by the inclusion of online sales in areas where retail sales growth is more of a challenge.

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