Consumers return to traditional high street but online sales continue to grow

This increase is not as big as that seen through traditional places of retail, but what is limiting the performance of the online channel is the lack of luxury brands that are currently for sale via this channel that come with much higher average sale prices. After all, there is still plenty of room for this channel to grow. The wider online markets tracked by GfK Retail & Technology UK in other sectors such as Consumer Electronics and IT, track the online channel to have around a 15-20% market share. Online sales for watches only equate to 10% currently.

Back on the high street it is the Multiple Jewellers that have benefitted in 2011. They consistently took market share between February and October in 2011 and now on average are worth just over half of the total market value over the previous 12 months. Where they are benefitting from in particular is the high end. Watches over £5,000 had a market share in Q1 of 2011 of 14.9%, this had grown to 22% by Q3. This some what makes a mockery of the current press who are reporting prospects of a double dip recession and consumer confidence at new lows.