ARTICLES
5
min read time
December 5, 2023

How UK retailers can face the challenge of the 2023 sales volume decline

Examining 2023's UK retail trends and strategies for facing upcoming retail challenges.

How UK retailers can face the challenge of the 2023 sales volume decline
Table of Contents

With just a few weeks to go until the end of 2023, it is difficult not to observe with interest the current retail dynamics in the UK, while also thinking of solutions that retailers could adopt to help face the challenges.

On paper, the latest figures paint a sobering picture: there has been a consistent decline in retail sales volumes over the past 6 months, with a notable 0.5% drop in October 2023, following a 1.1% decrease in September.

This downturn reflects the broader economic pressures squeezing consumer spending. These are also just the official ‘helicopter view’ figures. I predict that retailers could face as much as 20-30% less revenue during upcoming Black Friday and Christmas campaigns.

But, amidst the clear challenge, the steady rise in internet retail sales, capturing over a quarter of the market as of August 2023, signals a continued significant shift in consumer behaviour​​.

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Live Shopping has and will continue to emerge as a strategic game-changer.

It’s for these reasons why ‘Live Shopping’ has and will continue to emerge as a strategic game-changer, especially with the more innovative technology solution such as Sprii. The approach from platforms such as these harness the increasing time that consumers are spending online and the seismic shift towards online as a compliment to the high street.

By integrating Live Shopping into brand-owned websites, retailers can exert greater control over the shopping experience, offer unique promotions, and glean valuable insights from customer data to personalise future interactions​​.

It’s not difficult to see the appeal of Live Shopping and understand its rise in popularity. Its strength lies in its capacity for real-time engagement and personalization. It replicates, and thus supports, the natural ‘human to human’ nature of physical shopping, allowing customers to closely inspect products, engage with experts, and receive a tailored shopping experience. This method is particularly impactful in the luxury goods sector, where the demand for a more immersive experience is high​​.

Retail veteran Steven Hubbard is a Non-Executive Director of Sprii

Additionally, the rise of in-house brand advocates in Live Commerce is transforming the landscape of influencer marketing. Store associates, with their deep product knowledge and trustworthiness, are becoming key influencers. This shift towards in-house expertise enhances authenticity and fosters a more personal, human-centric shopping experience​​.

The crux of Live Shopping is its human-first approach, adding the often missed, but vital, human element to eCommerce. This innovation is not just about emerging tech and innovative platforms; but clearly about creating genuine connections with customers – a factor that is fundamental in driving sales and strengthening brand loyalty​​. It is about the customer experience, always.

As UK retailers will no doubt face a double-edged sword of challenges; declining physical store traffic and increasing online competition, embracing Live Shopping offers a tangible solution. This is true not just as we head into Black Friday campaigns and the Christmas shopping period but also into 2024 and beyond.

Live Shopping offers a real opportunity to innovate, personalize, engage, and convert customers in new, meaningful ways!

This is the ideal solution to the struggles UK retailers face. Brands that adapt to this ‘trend’ are likely to see not only a boost in sales but also a significant gain in market share. Global economic situations and outlook may post the UK with challenges – but there are solutions if we are willing to think differently and adopt this ‘hybrid’ approach to eCommerce and the evolution of retail.  

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Steven Hubbard
Non-Executive, Director
Author
Steven Hubbard
Non-Executive, Director

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Sprii in Action

During a Live Shopping event, Sprii automatically replies to comments, creates orders for your customers, sends them a link to their basket, and handles payment and shipping.

5. Create hype & excitement during your events

The beauty of Live Shopping is that it can be used in so many ways. This is particularly valuable during Black Friday and Cyber Monday when businesses are looking to engage their viewers in as many ways as possible.

Here are 3 ways to create hype and get customers excited about your Black Friday events so you can achieve your revenue goals.

5. Create hype & excitement during your events

During Black Friday and Cyber Monday, potential customers often experience an intense pressure to participate in the shopping frenzy, driven by the fear that they will miss out on the best deals and discounts if they don't join in.

Live Shopping enables viewers to make purchases instantly while watching the stream, which can be especially effective during Black Friday and Cyber Monday when time-limited deals are available. This instant purchasing capability can drive sales during Live Shopping events.

With Live Shopping, consumers get the personal assistance of an in-store shopping experience and the convenience of being able to shop from the comfort of their own sofa or favorite coffee shop.

Viewers can get information from the retailer in real-time by asking questions directly in the Live Shopping event.

During a live show, viewers can ask questions and get answers in real-time. Even better, they can interact with each other and share their experiences with your products.

AspectTraditional E-Commerce JourneyLive Shopping Journey
Marketing ApproachHigh ad spend and several channels to attract shoppers to webshopLeveraging existing social media followers
NavigationRequires navigating through a static webshop to find products.Requires nothing more than watching a live video to discover new products.
Product PresentationProducts are presented through static images. Products are presented in a live video by engaging hosts.
Customer ExperienceFeels like a business transaction.Feels like a personal connection.
Engagement and InteractionLimited to static product descriptions, images, and occasional customer reviewsOffers real-time interaction between hosts and viewers, allowing for immediate Q&A, live demonstrations, and personalized recommendations
Customer ExperienceCustomers independently navigate the webshop and make purchase decisions without help.Customers are guided through products, receive helpful information, and can ask questions as well as see what others are writing and asking.
Conversion RatesRelies on well-designed websites and optimized marketing funnels to convert visitors into buyers.Often achieves higher conversion rates due to the sense of urgency and interactive nature of live events.
Customer Acquisition Cost (CAC)Higher CAC due to extensive marketing efforts across various channels.Typically lower CAC by leveraging social media followings and organic engagement during live events.
Return RatesHigher return rates due to customers not fully understanding the product before purchase.Lower return rates as live demonstrations provide a clearer understanding of the product, leading to more informed purchasing decisions.
Time to sellCan range from hours to weeks or even months. Often much quicker, ranging from minutes to hours.
Metric Traditional E-Commerce Live Shopping²
 Avg. Conversion Rate 2.5%³  Up to 60% (Sprii Data)
 Avg. View Time 54 seconds⁴ 20+ minutes (Sprii Data)
 Avg. Checkout Rate 45%⁵ 60% (Sprii Data)
 Avg. Return Rate 20-30%⁶ Under 10% (Sprii Data)
 Avg. Customer Acquisition Cost (CAC) +€50⁷ 0*
 Avg. Sales Cycle Hours, weeks, months Minutes