Content EEI Online Trading Report September 2013
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2 Content etail Excellence Ireland Overview Overview to Market Year on Year Sales, Conversion and Visit Report Month on Month Sales, Conversion and Visit Report Overall Traffic Average Basket Values Q3 Averages Overview of Report and Calculations
3 OVERVIEW etail Excellence Ireland (EEI) is the Digital Division of the largest retail industry trade body in the country, Retail Excellence Ireland (REI). REI is a not for profit organisation which invests in innovative and exciting learning, market intelligence, commercial services, Government representation and member networking initiatives. EEI s remit is to develop the highest standards and skills with the aim of promoting a vibrant and competitive world class etail industry in Ireland. Online Trading information is key to understanding and gaining leverage of the etail market. EEI has undertaken to collect data from EEI members on a monthly basis to identify key trends in the market and to share that information with contributing members.
4 OVERVIEW SEPTEMBER ONLINE TRADE Online sales continued to soar in September and achieved another month of double digit growth. Online sales grew 87% in September versus a year earlier, on a weighted basis. All categories contributed to growth across sales, conversion and visits. Irish retailers are investing to ensure their multichannel processes can meet consumer demand and this is reflected in the massive YOY LFL sales increase. Visits (combined web & mobile) have increased 10% and conversions increased 10% indicating that qualified visits are being driven to brand sites and the propensity to purchase has increased. In addition, consumers are checking the latest trends of the season online which demonstrates the vital role online plays for retailers during the transition between seasons. MOM sales continued to grow albeit slower in September vs August 2013 at 3% increase. Conversions grew 9% MOM and visits grew at 2% MOM. Retailers reported a fantastic Back to School period which lasted up to early September. Any B2S sales ended early September and all product went back to pre-sale prices which had an affect on sales for that sector. General sense of a back to school effect with reduced visits and sales in September. Across the board, there were no specific Hero offer in September post B2S, and before Halloween/Xmas Rush, and as a result a large portion of Retailers choose to reduce marketing spend in September. Retailers are investing more time and funds into digital marketing with paid search campaigns and display featured as marketing activities that drove better conversion. In general, there is a lot of progress being made to improve customer experience online with simpler checkouts, streamlined navigation, improved content and product descriptions all of which are increasing sales on an on-going basis. MOM statistics across Sales, Conversion and Visits. Sales increased by 3% MOM Conversions grew 9% MOM Visits grew 2% MOM YOY statistics across Sales, Conversion and Visits Sales up 87% on a like-for-like basis from September Visits are up 10% YOY. 10% increase in Conversion online which is trending highly with a continual increase (up 12% MOM on YOY).
5 Trading Report - YOY Activities % YOY Difference May-13 Jun-13 Jul-13 Aug-13 Sep-13 YOY Sales 81% 26% 74% 61% 87% 83% YOY Conversions 29% 41% 34% 38% 10% 38% YOY Visits 36% 74% 32% 10% 51% Average Monthly Growth Sales values up 87% on a like-for-like basis from September 2012 which is a significant increase for a YOY comparison. Visits are up 10% YOY, and 10% increase in conversions. Worth noting that even a small increase in conversion rate is significant in terms of revenue generation. On average Irish retailers conversion rate is 1-2%. The YOY activities indicate that even a relatively modest increase in visits mixed with a strong focus on conversion will produce a bigger overall sales result.
6 Trading Report MOM Activities % MOM Difference Jun-13 Jul-13 Aug-13 Sep-13 Average Monthly Growth MOM Sales 22% 9% 5% 3% 10% MOM Conversions 21% 8% 43% 9% 20% MOM Visits 24% 6% 53% 2% 21% Online sales continued to grow albeit slower in September vs August 2013 at 3% increase. Conversions grew 9% MOM and visits grew 2% MOM. Retailers reported a fantastic Back to School period which lasted until early September. Any B2S sales ended early September and all product went back to pre-sale prices which had an affect on sales for those sectors involved. General sense of a back to school effect with reduced visits and sales again for those specific sectors such as fashion (clothes and footwear) and books. Across the board, there were no specific hero offer in September post B2S, and before Halloween/Xmas Rush, and as a result a large portion of Retailers choose to reduce marketing spend in September. Where gains were made paid search, re-marketing activities and display ads boosted visits and promotional s appeared to be actively sending visits and driving good conversion rates. What is the focus for the upcoming months to increase sales? Improve conversion through conversion rate optimisation processes i.e. Review the checkout journey to ensure there are no barriers, Understand if the calls to action ( buy now etc) are converting or presenting a barrier? Is the position, size, style of button giving you the best results.
7 Trading Report Visit Figures Visits Jun-13 Jul-13 Aug-13 Sep-13 Average Monthly Growth 151, , , , ,609 Mobile browsing and visits has increased significantly and is accounting for an average estimate of 30% of visits in September. Some retailers report up to 50% of visits coming from a mobile device. Desktop browsing appears to stay stat with average of 5% growth MOM. Some of the behaviours behind mobile browsing (from Google Think) are: 69% of Smartphone owners use their smartphones to research or purchase. 18% of smartphone users researched their most recent retail purchase on their smartphone. Types of information Smartphone look for: 33% for price information/special offers, 23% for quality information, 24% for review and ratings, 20% for brand names; 10% information about origin, and 12% for location.
8 Trading Report Average Basket Value Average Basket Value Aug-13 Sep-13 Average Basket Value Average Basket Value at 40 in September. Big variance on ABV MOM which was largely affected by Back to School sales and we expect this to increase significantly in October as pricing went back to normal.
9 Trading Report Q3 % YOY Difference Q3 Combined YOY Sales 74% YOY Conversions 28% YOY Visits 39% % MOM Difference Q3 Combined MOM Sales 6% MOM Conversions 20% MOM Visits 20% Visits (combined average) 127,697 Q3 is the first quarterly report to be produced by EEI, and overall there are great gains across sales, visits and conversions. 74% overall growth in Q3 versus a year earlier, on a weighted basis.
10 OVERVIEW OF REPORT AND CALCULATIONS Data is collected on a monthly basis directly from EEI members Data is collected via on-line survey Sales data is gathered confidentially and no individual retailer s data is ever disclosed Reports are provided to participating EEI members free of charge In the starting phase of research in May 2013, Online Sales and Conversion Rate YOY data was collected From June 2013 the following data was collected: MOM Sales, Conversion and Visits figures (as a percentage) YOY Sales, Conversion and Visits figures (as a percentage) Overall Visits (as a number) The data is rationalised by a weighting system algorithm to give average sales and conversion trading figures, as well as average visit levels Having figures for sales, conversion and visits allows us to understand the relationship between visits and sales, and in the longer term, how these figures (visits) relate to in store activities i.e. Research Online, Purchase Offline (ROPO) and Multichannel activities.
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