Business Technology

Published

British high street could gain £7.8bn if stores harness mobile strategies like Apple Pay

4 Mins

The parent company of VoucherCodes.co.uk has made the revelation following the official launch of Apple Pay in the UK on 14 July, which saw businesses including Pret and PayPal discussing the benefits the mobile commerce channel will have for customers.

The study ran with the Centre for Retail Research (CRR) and found that 26.6 per cent of all online sales in the UK will be completed with a mobile device this year – a figure set to double by 2017.

Indeed, Brits were named the biggest mobile shoppers in Europe with an mcommerce spend of £8.4bn in 2014, which is set to surge to £22.7bn by next year – a 169 per cent growth.

It’s not just the rate of adoption that’s growing either, according to the research, as the average basket size is catching up with desktop-based sales – £49 versus £58. Perhaps unsurprisingly, digital content is the most common purchase via mobile at 32 per cent, followed by fashion and entertainment, such as books and DVDs, at 27 per cent and 23 per cent respectively.

“Doubling down focus and investments in mobile commerce is more important than ever for retailers: research shows that providing a great mobile experience is a highly effective way to generate customer loyalty,” said Giulio Montemagno, SVP & GM International, RetailMeNot.

“The development of mcommerce is not simply a technology development, but a secular change in the consumers’ consumption patterns and therefore should be a change in any retailer’s mindset.”

Read more on the payment evolution:

With all of this in mind, it’s led RetailMeNot to insist the country’s retailers do more to introduce mobile-based strategies into their tangible operations. Noting that it’s not just mobile-friendly websites and apps that should be considered, the firm explained stores should cater to new and emerging consumer demands.

Some 40 per cent of the UK’s shoppers now expect to make and check reservations on mobile and access loyalty schemes from their phones. With 43 per cent claiming they would spend more in mobile-savvy stores, the high street could in turn receive an additional £7.8bn in revenue.

Digital wallet Apple Pay, for example, allows iPhone 6 and Apple Watch users to make payments and keep track of rewards with compatible retailers – some of which include Boots, Nando’s and McDonald’s – without the need to dip into their actual wallet for cards or vouchers.

Another such development is the arrival of beacon technology. London Gatwick Airport was among several UK airports to be fitted with the solution, which allows stores to send targeted deals to consumers’ devices, to capture travellers during downtime between flights.

Montemagno added: “Mobile devices have become an ever more important part in the discovery phase of shopping and retailers who do not adapt their services risk losing out to more innovative competitors.

“If the biggest barrier for consumers is the unsatisfactory performance of mobile sites, this presents a huge opportunity for retailers to integrate mobile into their strategy and see mobile sales boom. Consumers already feel more confident with the idea of buying on mobile this year than they did in 2014; we must keep the momentum and continue to adapt in step with consumers, rather than simply following them.”

Share this story

Government wants UK firms and cities to be inventive with £10m Internet of Things fund
Ridiculous pitches: How to not get backing from those coveted investors
Send this to a friend