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CACI reveals “halo effect” of physical stores on online sales is strongest in London

Tom Bottomley
02 September 2019

Research from consumer and location intelligence specialist CACI has unveiled the “halo effect” boost to online sales within the catchment area of a brand’s physical store is highest in London, with an average 110% increase.

The regional insight follows the publication last month of CACI’s report that identified online sales across the UK are an average 106% higher within a physical store’s catchment area.

The research, which breaks down the online halo effect by UK region, also shows that whilst the South West and East Midlands are lowest in the UK at 93%, this is not as far behind the capital as might be assumed, and still represents a significant uplift to online sales for brands in these areas that retain bricks and mortar stores.

Commenting on this additional insight, John Platt, director of CACI Property Consulting Group, said: “London – a global leader in technology – has the most significant halo effect at 110%, but this is not as far ahead of the rest of the UK as might be assumed. While the South West and East Midlands are 13% below the UK average, possibly due to customers maintaining more traditional shopping habits, the halo effect in these areas still delivers 93% 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.”

The regional halo effect research is the latest in a series of industry insights published by CACI as it works with landlords, retailers and leisure operators to help them to gain a better understanding of changing consumer behaviour.

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