The online channel saves the holiday shopping season

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Spaniards will reduce their gift budget by 14% this Christmas

Once the Christmas season is over, SAP has released the data recorded by its customers, which serve as a thermometer to analyze the progress of the Christmas season in the retail sector.

In total, through its SAP Commerce Cloud e-commerce platform, sales were made for a total of $31.9 billion in gross merchandise value (gross merchandise value, GMV) throughout the season and in 70 countries. The year-on-year increase registered by its customers through the platform amounted to 80% and the average value of orders (AOV) stood at 29%.

These data confirm that while retail has posted flat sales growth, e-commerce remains an exception. This is revealed by the MasterCard SpendingPulse Studio, when he points out that retail sales recorded year-on-year growth of 7.6% during this campaign, but taking into account that inflation was 7.1% at the end of November, it is likely that this increase in the sales figure corresponds to to rising inflation. However, online sales increased by 10.6% year-on-year, which is why they were above the percentage increase in prices.

SAP Commerce Cloud retail customers experienced a 138% increase in conversion rates, which means better traffic and strategic targeting.

«Despite the challenging macroeconomic environment, SAP Commerce Cloud retail customers have been able to achieve record holiday results“, has stated Riad Hijal, Global Head of Marketing and Solutions for SAP Commerce Cloud. «Our built-in intelligence and broad set of capabilities enabled them to identify and target the right customers with relevant promotions and offers without undue sacrificing margin. This has led to higher conversion rates, AOVs, and ultimately profitability.«.

trends 2023

According to the outlook for the retail and consumer goods sector of The Economist Intelligence for 2023, inflation will continue to dominate the debate as it affects retail, profits and the labor market. Consumers will continue to look for deals and lower prices, which will likely increase the market share of discount stores. They also predict that online sales will slow down, although their share of total retail sales will continue to grow steadily.

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