The online “halo effect” is most prominent in London, meaning any retailer with physical stores in the capital is more likely to see an online sales boost.
Online sales in London are an average of 110 per cent higher inside a physical store’s catchment area, according to new research from the CACI.
The “halo effect” is less prominent in the South West and East Midlands, the only two areas to fall below the national average seeing sales rise 93 per cent within a physical store’s catchment area.
Across the UK, sales rise an average of between 106 and 108 per cent when in close proximity to a physical store.
“London – a global leader in technology – has the most significant halo effect at 110 percent, but this is not as far ahead of the rest of the UK as might be assumed,” CACI’s director John Platt said.
“While the South West and East Midlands are 13 percent below the UK average, possibly due to customers maintaining more traditional shopping habits, the halo effect in these areas still delivers 93 percent more online sales for brands that have used bricks and mortar to complement their online presence.
“Our research into the regional differences in the halo effect highlights once again that, while the function of the physical store is changing, it still plays a significant role across the nation in driving retailer performance. This is great news for brands and landlords alike.”