Amazon is the retail phenomenon which started in a garage and now, nearly a quarter of a century later, new research from Mintel reveals that almost nine in ten (86 percent) Brits are Amazon users/shoppers. Highlighting the ongoing popularity of the retail giant, according to Mintel, more Amazon shoppers have increased their shopping (21 percent) with the retailer than decreased it (13 percent) over the past year.
Inherent trust in this retail giant is confirmed by the fact that as many as half of Amazon users assume that the e-retailer has the cheapest prices, while six in ten (59 percent) say they are loyal to the company. What is more, 70 percent of Amazon shoppers say it is the first retailer they go to when shopping online.
Amazon is not the high street killer
The impact of Amazon’s reach into the physical retail sector is confirmed by the fact that almost half (45 percent) of Amazon users believe that the e-tailer is responsible for physical stores closing. Meanwhile, three quarters (75 percent) of Amazon shoppers say they often check the prices of products they see in-store on Amazon. And physical retailers are probably being used as showrooms, as 70 percent of Amazon shoppers say they research products elsewhere but then buy via the site.
But while many acknowledge the negative impact of Amazon on the high street, some 40 percent of Amazon users believe it supports independent retailers and 29 percent believe that shopping via Amazon Smile is a good way to give to charity.
“Amazon’s growth has no doubt wounded rivals, but it is not the ‘high street’ killer that it is often painted out to be. It has certainly led on, and to a degree enforced, many trends that have come to define 21st century retail, however it is not all conquering at present. Indeed, even if the retailer accounted for roughly 50 percent of the online market held by online-only retailers, it would only account for around 9 percent of all UK retail sales. And despite the popularity of online retailing as a whole, the vast majority of all retail sales (82 percent) in the UK still come through physical stores. This leaves much room for its own growth but equally for rivals to fight back”, Nick Carroll, Mintel Associate Director of Retail concludes.
Source: Mintel Group