Those of you who read this blog will know that I like using the net a lot. So it will not surprise you that I did all my Christmas shopping online and never went near a shop. Amazon got their act together this year and delivery was spot on - even a late order for 6 items on the evening of Sunday 21st December arrived before noon on Tuesday 23rd. eBay shops were good, charity cards arrived by post and I sneaked some wrapping paper my wife had stored away in the loft after buying it in the January sales nearly a year ago. Coming from a family of retailers, I got a fair amount of stick when I told them on 25th that I had not been to a shop this Christmas. "You should support the High Street", they told me, implying that the only way to ensure a retailer made money was people coming through the front door of a physical shop. It seems to escape some retailers that the as the recession hits deeper and deeper, the retailers who are most likely to survive are the ones with the lowest cost base - those with a virtual front door online open 24x7. It certainly does not need to be the only part of the mix, but it is very likely to be a key component.
None of us know how long or deep this recession will be, although most media columnists are erring on the side of caution, and realistic employees are more than happy settling for zero pay rises in the knowledge that they still have a job. Spending patterns are changing significantly with a much higher percentage paying by cash than shops have seen for years, and credit card payments taking a dent as inidividuals max-out their accounts. However, I also see big changes in web retailing - where the much lower costs leads to lower selling prices, in turn showing an acceleration in spending online over the high street.
Support retailers I did - supporting those with the vision to sell online.
