Amazon-obsessed UK is leading the (western) pack when it comes to Ecommerce
The UK is leading the way when it comes to Ecommerce, doing significantly more online shopping than its peers in the developed world. The country uses almost a fifth of its entire retail spend on Ecommerce platforms, and the overwhelming market leader amongst them is Amazon. In fact, Brits are spending so much money online that the country’s largest brick-and-mortar retailers (supermarkets like Tesco and Sainsbury) are only just clinging onto their profitability.
Holiday season sales were slow in the UK. So slow, in fact that a spate of warnings were issued by retailers like Debenhams Plc, Mothercare Plc, and more. Additionally, the reported profits of both Tesco and Marks and Spencer have both more-than halved in the last three years! It’s a far cry from the kind of figures Amazon reports once every three months.
According to The Economist Intelligence Unit, UK physical-store retail sales are going to suffer even more in 2018, falling by 0.4%. In contrast, U.S. sales are predicted to rise by 2.4%. There are a number of reasons for this, some of which are obvious. Ecommerce is flourishing in the UK because it is densely populated with good road networks and strong wifi connectivity. That’s a good combination, from an Ecommerce perspective. And it probably doesn’t hurt that online sellers get preferable tax treatment too.
Despite a difficult week last week, Amazon’s share price is still up by more than 15% so far this year
SOURCE: Yahoo Finance
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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