More UK e-retailers planning on opening physical stores

UK SME e-retailers have big plans for 2014, as many e-retailers are planning to open up physical stores at some point during the course of a year according to a new survey that was conducted by Royal Mail. The survey revealed that online businesses are concerned that there is too much competition online, therefore they are thinking about moving to a physical store to expand their business into a new market.

One out of every six businesses in the survey reported that they are looking into how they can secure space so that they can expand into a physical store. 15% of the SME e-retailers in the UK stated that they are going to use the online marketplaces to continue to sell their goods and also sell them at the physical stores while another 40% stated that they are going to look into new channels that they can trade from over the next 12 months so that they can increase their sales.

In addition, the survey also found that about 54% of the 400 online retailers that participated think that online competition for shoppers has increased over the past year with about 60% of those asked stating that there are simply more websites competing for the same traffic.

Managing Director of Royal Mail Parcels, Nick Landon, stated that the annual tracker study of online retailers in the UK shows that most think that they will increase their sales by turning to physical sales as well because the competition online is continuing to grow and that last year as very intense.

He continued to say that the intense competition is leading SME e-retailers to get creative about how they will open up new channels within their market and this is why many are turning to new online marketplace listings and to physical premises. Consumers are the winners of the competition as prices are lowered while quality of goods is increasing to help drive increased sales.