Two-thirds of retailers missing out on Christmas customers by not trading online

Research from Barclaycard Business shows that two out of three retailers in the UK are missing out on much needed Christmas business by not setting up a website and trading online.

The research found that 69 per cent of retailers questioned do not currently trade online and are missing out on lucrative Christmas sales as millions of shoppers shun the high street to shop online.

The research comes from the first Barclaycard Business Retail in Detail Survey; an annual survey of more than 1,000 retailers across the country. The aim of this new survey is to build a comprehensive picture of the nation’s high street and to gauge the views of retail owners in the UK today.

The survey by Barclaycard Business gives an insight into the potential benefits to a retailer of trading online. The research has found that of those retailers who were able to accept business over the Internet, nearly two-thirds (63 per cent) had seen an increase in their business over the last 12 months.

To investigate the motives for trading online the research looked at why so many retailers were still not trading over the Internet and benefiting from this new marketplace. The research found that nearly one in five retailers (23 per cent) cited the cost of setting up online as a barrier to implementation and more than one in ten (13 per cent) responded that they felt they did not have the technical know-how needed to set up an online service for customers.

Bill Thomson, Commercial Director, Acquiring from Barclaycard Business commented on the results, “The growth of online shopping over the last five years has opened up a lucrative new revenue stream for UK retailers. However, it is clear from our research that many retailers are not yet benefiting from this new income by making their goods and services available online.”

“Our research shows that many retailers perceive setting up online as a costly exercise. In fact the opposite is true. Starting to trade online can be extremely quick and cost effective; a move that can deliver new business which will quickly repay any initial costs.”

The survey also revealed that the number of years a retailer has been operating had a direct link on whether they traded online or not. 1 in 3 retailers (36 per cent) operating for between 1-2 years traded online compared to just 24 per cent of retail businesses that have been trading for 10 – 15 years.

Bill Thomson added, “Just because a retailer has been operating for a number of years does not mean that they should be deterred from starting up online. If a company has built up a strong reputation amongst its client base over many years, adding a new way to market its products and services can attract new customers, grow the retailer’s income and ultimately grow its business.”