By Elizabeth Anderson Monday, 19 September 2011

Retailers clueless when it comes to the web

The UK's top retailers are losing out on £500m because they're neglecting their websites.

We might be a decade into the digital age, but retailers are losing hundreds of millions of pounds because they apparently haven’t worked out how to hook potential customers online.

And these aren’t small companies: some of the UK’s top retailers, including Morrisons, Dixons and Phones4U are guilty of not keeping their websites and phone apps up to scratch, according to research commissioned by digital agency Head London and carried out by Oxford Economics.

It’s an expensive mistake – retailers missed out on a total of £500m over three years as consumers gave up trying to work their websites. Morrisons is the retailer losing the biggest amount as it drags its heels over the world wide web. The supermarket chain lost out on a potential £314m in sales between 2007 and 2010 because it doesn’t let people shop online and doesn’t do home delivery - although it is (admittedly rather belatedly) trying to address that, and hired former Apple internet store director Simon Thompson earlier this month to help. Tesco, on the other hand, generated an extra £225m in sales because of its pains to make online shopping easy for their customers.

Dixons and Homebase were also flagged up as firms maintaining a poor online presence when it comes to sales, losing out on £32.6m and £9.6m respectively. Considering Dixons reported earlier this month that sales slumped by 10% in the three months to July, that figure must be a bit of a kick in the teeth to say the least.  

‘[Retailers] usually have a mobile website and even an app, but too often these services are not joined up. By not giving customers the information they need on the platform of their choice they are less likely to complete purchases,’ said Paul-Jervis Heath of Head London.

Meanwhile Phones4U could have lined its pockets with an extra £17.5m had it been more internet-savvy.  Perhaps it should have spent less time thinking up those controversial Jesus ad campaigns and more time making sure its own website got the thumbs up.

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Latest from MT

John Redwood's threats are a nasty foretaste of the impending EU bust-up

John Redwood's threats are a nasty foretaste of the impending EU bust-up

EDITOR'S BLOG: Kray twins-style enforcer John Redwood getting heavy with Europhile business leaders is a sign of the upheaval to come, says Matthew Gwyther.

 

Europe is a 'slacker with low expectations', says Paypal founder

 

House prices have finally fallen

 

RBS shares boom on 'bad bank' performance

 

The UK economy shrank less than we thought