Retailers lost sales this Christmas because their supply
chains were unable to cope with the level of demand from customers
for online shopping.
The trade body for online retailers, the Interactive Media in
Retail Group (IMRG), said that consumers spent £7.66bn online over
the 10 weeks up to Christmas.
IMRG managing director Jo Evans said, “Websites struggled to
cope with the soaring traffic levels, stocks sold out early, and
delivery companies were at full stretch dispatching the 200 million
parcels ordered.
“Sales demand outstripped supply capacity by a significant
margin, otherwise sales would have been higher still.”
Online spending for the 10-week Christmas period was 54% greater
than the £4.98bn spent over the same period in 2005. Sales were
more than double what they were in Christmas 2004, when consumers
spent £3.33bn.
Online retailers are still getting to grips with their home
delivery networks. IMRG chief executive James Roper said, “Home
delivery is the last main structural problem for the industry. It
is a horrendous problem.”
More information:
Shops report major e-sales growth
Asda sees £7m boost from supply chain
software
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