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ClimateNE & Climate Change Schools Project support the move to a low-carbon, resilient economy and help businesses avoid risk and realise commercial opportunities. Posts by Jen Atkinson, Krista McKinzey and Harriet Thew » SOMEWHERE within the clouds of gloom emanating from the high street yesterday was at least a glimmer of positive news.
High street institution Marks & Spencer delivered a hammer blow to the retail sector and its job market yesterday with the announcement of 1,200 job cuts and the closure of 27 stores.
However, although this in no way makes up for the jobs cull, a little reported fact from the department store chain's trading update was that online sales were on the up.
Of course, online sales operations are not labour intensive and a growing online division at M&S is unlikely to boost employment figures, but it is a sign that digital retailers may be set to ride out the storm in 2009.
In the third quarter of its financial year - or the 13 weeks to December 27 - as the group recorded a 7.1% slide in like-for-like sales, it also marked an impressive 29% climb in online sales.
"Online performed strongly in quarter three with record traffic driving sales up," said Marks and Spencer chairman Sir Stuart Rose.
And the strong start to the year for digital retailers is not restricted to the high street.
Fast food retailer Domino's Pizza enjoyed a 56.2% rise in online sales during the festive period.
Meanwhile the latest business survey by a marketing group with too much time on its hands would also suggest a positive year for web retailers.
Latest research conducted by e-commerce company Actinic found that online retail sales got a significant boost over Christmas 2008.
In the poll of small- and medium-sized business in the UK, increases in order levels and turnover, as well as a shift towards last-minute buying were evident.
The sample of respondents reported an average of 48% increase in turnover, and a 43% jump in orders placed in November and December 2008, compared with the same two months of 2007.
Here in the North East, our biggest furniture retailer SCS is gearing up for an online sales drive to strengthen its armoury in what promise to be tough times ahead.
As reported in The Journal this morning, the company has awarded a new web development contract to Newcastle's creative group Armadillo as it looks to boost its web presence.
The coming year promises to be one of the toughest in living memory for retailers, but as thrifty punters stay at home and search for online bargains, at least one division of the sector looks to be doing well.
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