This week has been a mixed bag in mobile retailing. While there are some obvious good points – average order value of mobile is up in July, contactless mobile payments are growing more rapidly than thought, and social media is driving more UK sales – the overall picture for UK retail is potentially a turbulent one.
Take the average order value rise: this is very welcome news to anyone investing heavily in mobile retail and plays nicely with the fact that there is a growing cabal of digitally obsessed shoppers that are switching to the digital savvy brands.
However, the figures belie what is really happening in retail. Growth is down and, while traffic may have gone up over July, revenue hasn’t match it.
The reason is simple: Amazon Prime Day. While Amazon saw its own traffic up 60% year on year on Prime Day this July – and most other online retailers saw a spike because of the now well-established shopping jamboree – the net effect is that discounting was so high that revenues never saw the growth that the traffic would suggest.
Now, it would be unfair to blame Amazon entirely: it is more symptomatic of…