Ecommerce growth puts high street retailers at risk

According to the website Warc, brick-and-mortar stores and high street retailers are falling out of favour with U.K. consumers, who prefer the ease and convenience of ecommerce.

Media regulator Ofcom surveyed 2,117 people aged 16 and older, and found that 46 per cent of adult respondents agreed they had made significant savings by purchasing something online rather than visiting brick-and-mortar shops.

In addition, 82 per cent of those surveyed reported that they saved money by utilising price comparison portals, web-based retailers, group buying sites or equivalent digital tools, instead of turning to high street.

VisualSoft adds that many of the 3,500 high street retailers across the U.K. are at risk for closures, since only 10 per cent are within what merchants identify as prime locations for shopping. While they were able to get by in more prosperous periods even if sales were slow, in the modern market it's become more difficult to rely on customer retention.

Plus, technological advances in payment security on ecommerce websites, such as 3D Secure and Verified by Visa, are also encouraging consumers to shop online.