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Amazon not major cause for brick-and-mortar stores shutdown in UK: research

Source: Xinhua| 2019-03-07 23:40:58|Editor: Mu Xuequan
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LONDON, March 7 (Xinhua) -- Almost nine in 10 Britons shop on Amazon, but the online retail giant appears hardly as responsible for the closure of brick-and-mortar stores as people think, a new research revealed on Thursday.

Most Amazon customers shop with the retailer at least once a month, while nearly a fifth use it on a weekly basis. An impressive 45 percent of UK households have some form of Amazon produced device, said a report by Mintel, a leading market research firm.

The research showed Amazon is the first choice for 70 percent of Amazon shoppers when shopping online, and around 15 million Britons, younger consumers in particular, are members to Amazon Prime, a subscription-based service.

It said Prime members are significantly more likely to purchase across all product ranges, mostly drawn by the speedy delivery at no extra cost. However, some people believe the "too expensive" scheme put off potential members.

Nick Carroll, Associate Director of Retail at Mintel, said: "Amazon is a phenomenon of 21st century retail. In a little over 20 years, it has grown to be a retailer that nearly all consumers use. It has achieved this through a relentless focus on customer-facing investment and innovation."

"Amazon started selling books, but now holds a significant share in almost all retail categories, helped by the incubation of thousands of independent sellers through its Marketplace scheme," Carroll said.

To the surprise of many, the report found though Amazon's growth has no doubt wounded rivals, the e-tailer is not the "killer" of high street retailers as it is often thought to be. Despite the popularity of online retailing, 82 percent of all retail sales in Britain still come through brick-and-mortar stores.

"This leaves much room for its own growth but equally for rivals to fight back," Nick said.

The report said 70 percent of Amazon shoppers say they research products elsewhere but then buy via the site, with half of them assuming it offers the cheapest prices, and brick-and-mortar retailers are probably being used as showrooms.

High streets in Britain are facing challenges in recent years, with about 14 shops closing each day, a report from accountancy PwC said last November. Many put the blame on competition from online retailers and business rates.

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