According to the latest data published by Kantar Worldpanel, online sales have reached a record share of the physical entertainment market and now account for 42% of purchases, reflecting the wider trend of consumers spending less money in stores and more money online.
Over the 12 weeks leading up to 8 April shoppers, on average, spent almost £19 when shopping for physical music, games and videos online – compared to just £15 instore. Moreover, 27% of consumers now buy their physical entertainment goods exclusively online.
Shoppers are forgoing physical video purchases in favour of digital downloads, rentals and video streaming services; meanwhile, online physical music sales have grown 13.6% in the past quarter, with Amazon dominating the market.
Kantar Worldpanel’s data is consistent with wider reports about the death of the high street, as a new report by the British Retail Consortium and Springboard reveals an ‘unprecedented’ 4.8% decline in store footfall over the past two months.
“A wet start to April” and a “shift in the way we shop” are to blame for disappointing footfall numbers, says Helen Dickinson OBE, chief executive, British Retail Consortium, as customers buy instead from convenient, cheaper online retailers.
Nevertheless, Kantal Worldpanel’s consumer specialist, James Foti, maintains that high street shops remain important – in the physical entertainment market at least.
“37% [of shoppers] still split their spend across online and offline, suggesting the high street still plays an important part for shoppers and that those retailers which aren’t embracing a multichannel approach may lose out,” Foti said.
However, with 1 in 10 town centre shops now vacant, physical stores will have to evolve quickly to draw shoppers back from the likes of Amazon.
