Multi Channel Strategy Bodes Well in Times of Crisis
January 29, 09While U.S. online sales grew at a faster pace than total retail sales last year, chain retailers with combined e-commerce sales fared best. According to an early analysis of data for Internet Retailer, e-commerce sales rose by 19 percent, while chains with combined e-commerce sales saw sales soar 31.9 percent in 2008.
The figures reflect the results of 75 of the top 500 web merchants that provided actual year-end numbers. The merchants include 51 web-only merchants, 14 catalog companies, eight chain retailers and two consumer brand manufacturers. Their combined e-commerce sales rose to $8.33 billion in 2008. Total U.S. retail sales in 2008 grew by 1.4 percent to an estimated $2.4 trillion, according to the National Retail Federation.
The next fastest growing category after the chain retailers with combined e-commerce was web-only merchants, which grew combined sales by 19.3 percent to $3.65 billion, followed by catalog companies.
The two consumer brand manufacturers posted an 8.5 percent decline in web sales.
With many jewelry firms expressing fear, almost horror, from online diamond retailers such as Blue Nile, the analysis may provide a glimmer of hope. If independents and regionals adopt an aggressive online strategy, they could possibly turn the tide on their shrinking businesses and win increased sales, backed by the high quality personal service a store front can provide.