Bumper sales over Christmas not enough to salvage trading update for Asos says Dan Wagner, CEO and Founder of Powa Technologies
Dan Wagner comments:
“Known as a retailer who provides good value and fast delivery, Asos is predicted to have struggled to compete when other retailers aligned their strategy towards extensive price cuts and click-and-collect deliveries. While the company is expected to post increased sales, stiff competition in discounts from other retailers and stock issues from Autumn will see it fall below expectations.
Ultimately, Asos required another way to differentiate themselves in a period when most retailers adopted similar strategies. There should have been a greater focus on extending its eCommerce strategy to mobile and allowing customers more freedom in how they purchase their items with streamlined checkout processes and one-click buying. These additions to its eCommerce strategy could have allowed greater numbers of consumers to visit its website and complete orders faster, without being tempted other offers from rival sites.
“Debenhams’ sales strategy has seen considerable investment in its online strategy but the future of retailing in the UK lies within an omni-channel approach – retailers have to find the perfect balance of online and offline in order to capture rapid change in consumer behaviour, which includes purchasing goods across smartphones, tablets and in-store.”
“While the festive trading period has a been a mixed bag for the high street’s leading names, the British Retail Consortium (BRC)’s retail sales monitor is predicted to reveal a successful sales season. The preliminary result of a 2.2 per cent increase in sales compared to December is stronger than the year before, indicating that the Black Friday phenomenon has done well in bolstering consumer confidence and encouraging spending much earlier in the season, which caught many retailers by surprise.
However, heavy discounting will only go so far in attracting shoppers when everyone is applying the same strategy. Many of the retailers struggling this year have squandered profit margins on unnecessarily steep cuts. A robust omni-channel offering which enables them sustainable year-round growth must be a priority to keep retailers in the black.”