Retailer tactics that shone online and over the Christmas trading period
Posted on in Business News
JD Sports, Shop Direct, Boohoo Group and New Look have all reported rising sales.
Why is this? Especially when figures from the Christmas period and into the New Year show a decline in footfall, sales and an increase in returns.
Internet Retailing reports on the rising sales over the Christmas period.
JD Sports has reported that the increase in its sales is down to the multichannel model it has employed and the aversion to discounting which supported JD Sports to grow over Christmas. JD Sports implementation of the multichannel model has also assisted in the wider store growth over the first 48 weeks of its financial year.
Shop Direct offered cheaper prices without hitting profits, however, the successful use of machine-learning in chatbots helped reduce calls by 30%, flagging up its tactic of beaming prices and availability to high streets. The use of chatbots increased the number of mobile sales and boosted the share of sales to mobile devices.
The Boohoo Group in offering cheaper prices across the Christmas period also didn't reach profits, but strengthened the trust in chatbots and increased mobile sales.
New Look took on a multichannel trading model similar to JD Sports moving away from unsustainable discounting towards profitable sales to move from high levels of debt to equity. New Look's model has seen a hit on online sales but support towards maintaining a stable store, focused on driving sales into stores though click and collect.
It is becoming more and more evident that retailers are recognising the faults in harsh discounting and the need to implement different models and strategies, listening to the consumer rather than following the out of date strategy that discounting is always the solution.
What can independent retailers learn from larger retailers like the Boohoo Group and JD Sports who are moving away from the traditional discounting business strategy model?