Amazons dominance of UK retail grows
29 January 2015 - 09:37 by Sarah Collinson
The latest figures reveal that e-commerce giant, Amazon, is taking a commanding position at the head of the UK’s online retail sector, with 25 per cent of all the cash spent online in the run up to Christmas 2014 passing through its digital checkouts, according to TechWeek Europe.
The statistics, revealed by Kantar Worldpanel, indicate that Amazon was particularly dominant in the field of home entertainment, selling just over a quarter of all the movies, videogames and music prior to December 25th last year. By comparison, second place Tesco was responsible for only 14.7 per cent of this market, with HMV coming a close third.
So in spite of the fact that retailers with high street presences are holding fast, it is the popularity of shopping online and the power of Amazon’s brand that is causing an ongoing sea change in the industry.
The rest of the report went on to outline the shape of the e-commerce market, with online sales now accounting for 39 per cent of all purchases made in the UK.
Analysts also pointed out that the one obstacle facing companies like Amazon is that they cannot stimulate the same impulse buying habits in consumers as their high street equivalents.
People are less prone to buy an item on a whim when they are shopping online than if they are in store, which might lead to certain products facing a decline in sales, as fewer people visit bricks and mortar outlets.
Spokesperson, Fiona Keenan, explained that around a third of all in-store purchases were made on an impulse, rather than as a result of considered thought and research. This helps to generate hundreds of millions of pounds for retailers, but this could, of course, wane over time as online shopping grows.