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Literature review: The rise of the internet and consumer high street shopping habits

Kerys Pyne
Abstract
This literature review will examine the impact of the internet on high street shopping. The internet is
making it easy to shop online anytime, anywhere. The objective of this research is to measure
whether society has a preferred shopping choice, and if so, the reasoning behind this. Whilst
sometimes the internet is the most convenient way to shop, it was found the high street is more
attractive and offers more interaction and a personal shopping experience for clients, considering the
experience of choosing and trying the products for example. Also it is relevant to consider that
consumers are easily influenced by cost of the purchase, time saving and practicality.
Introduction
There has been much debate on the death of the British high street since the turn of the twenty first
century; with many theories and concepts as to why this is happening. Some authors (Barnes, 2013,
Portas, 2011 and Monsuw et al., 2004) believe the rise of technology and the popularity of the
internet could be involved. Technology is an exhilarating revolution it has changed the way
individuals communicate and purchase; the expectations of society have been transformed (De KareSilver, 2011).
The development in technology including computers, the internet, smartphones and tablets, allow
consumers to access information wherever and whenever, whilst marketing messages can be
targeted effectively and consistently 24 hours a day, seven days a week (Baker, 2003). According to
the Office for National Statistics (2013) In 2013, 36 million adults (73%) in Great Britain accessed the
Internet every day, 20 million more than in 2006, when directly comparable records began.
Context
In an overview analysis it is suggested that weather conditions profoundly impact the UKs shopping
behaviour. During sunny months consumers shift their shopping habits towards retail stores and away
from websites. Likewise in the colder, wetter months online sales appear to peak (Capgemini, 2013,
p.1). Therefore, it may be questioned whether the UK high street can ever win the fight against
internet shopping when 2012 was the second wettest year since records began (Quilty-Harper, 2013).
IMRG (2013) agree with this statement. Between June and July 2013, the first negative (-2%) online
sales growth was recorded. There is no doubt that this is due to the prolonged heat-wave (Capgemini

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2013). It is interesting to note however, that only computer/laptop sales deteriorated; mobile/tablet
sales were lower, but not significantly, suggesting perhaps consumers were shopping online outside,
in the sun. Moreover Neville (2013) evaluates the warm weather provided a feel-good factor, and
encouraged people to leave their homes, hence high street sales appeared positive.
Despite the negative growth for online shopping, it was recognised this did not affect overall online
sales; the UK still saw the strongest online sales growth in 13 years (IMRG, 2013, p.1), with internet
sales continuing to rise ahead of expectation. This highlights, an unforeseen phenomenon only a
few years ago (Chaing and Dholakia, 2003), the internet is becoming more widespread, and a key
threat to the high street.
According to Evans (2011), half of women stated the most enjoyable way to spend their free time is
by shopping. Worryingly for the high street, they spend 22 hours shopping online compared to 18
hours wandering around shops, on average buying 5 items of clothing each month, with only one of
these online (Evans, 2011). The UK once was a nation that prided itself with independent stores
(Portas, 2011); now high streets are full of the same chains and charity shops.
Before the 2008 recession, retailers seized opportunities, widening the amount of shops, ensuring
one on each high street (Portas, 2011). Approaching the end of the recession in 2013 however, this
has impacted companies greatly. High rents, along with the internet means the number of stores is
changing (Portas, 2011). Many authors believe UK retailers simply have too many stores (McLaren
2012, Retail UK 2013 and Portas 2011). Retail UK (2013) account 41% (153) of town centres across
the UK must shrink to survive due to the changing habits and behaviours of consumers. This
corroborates with findings which were highlighted when Sir Phillip Green, owner of the massive
Arcadia brand, which houses Topshop, Dorothy Perkins, and Burton to name a few, announced he
will begin to close a tenth of his stores (260).
On the other hand some argue the death of clone town Britain is a positive development, not only for
the internet but for both shoppers and retailers (Hemingway, as cited in McLaren, 2012). A market
stall owner in Camden believes it will provide advantages and opportunities for entrepreneurs, to set
up stores and market stalls selling a variety of new products and ideas (McLaren, 2012). Setting up
markets in town centres are therefore an innovative idea, providing opportunities and potentially
attracting people into the town centre, helping overall high street sales, and could deter some
consumers from the internet.
It is true that due to the rise in technology consumers shop in a selection of ways, including checking
websites, visiting multiple stores, reading product reviews, and even checking competitors prices
using a smartphone when standing in stores (Krupnik, 2013). Then the decision making process
begins; should the product be brought in store or online, and collected in store or be delivered to
home or work (Retail UK, 2013)? Consumers are conscious about spending their money, and are

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constantly looking for ways to save, consumers are spending less and spending differently
(McLaren, 2012, p. 51).
Money Conscious Society
Although it could be argued that it has always been the case, during the recession and approaching
post-recession, price is indisputably one of the most important determinants when shopping (Chaing
and Dholakia, 2003). This is consistent with Strauss (2013), who illustrated record numbers online,
hunting for bargains. It is apparent consumers want to ensure they are getting the lowest price, the
best value, and the most for their money, this knowledge can be easily achieved online.
Many websites are available, such as Vouchercodes, Moneysaving Expert, and Groupon, which are
easy to access and present money off vouchers, free delivery or rewards with online purchases.
Although, sometimes these vouchers can be used within stores, this is often disliked by consumers
(Palmer, 2013, Loveday, 2013). Evidence enumerates shoppers save 38.5 billion a year using the
various money saving methods (Strauss, 2013); therefore, the possible reasoning consumers prefer
to shop online are apparent.
Greater savings are a main motive in drawing consumers online (Chaing and Dholakia, 2003), and
ultimately easing pressure (Strauss, 2013). In addition Palmer (2007) recognises that using voucher
websites is something that can easily be done, looking at many different deals, whilst browsing and
shopping online. In contrast this cannot be done on the high street, they have to be printed out and
taken in, meaning consumers have to be efficient and organised in their purchasing. However, the
increase in smartphones has provided an opportunity for companies where there was a gap in the
market. Vouchercloud have released an app, which, using GPS locates the nearest deals and
discounts, this includes money off in retailers such as New Look, Topshop or H&M (Winch, 2013).
Online giants such as Amazon, with huge warehouses sell a massive array of products. These are
often at lower costs, due to fewer overheads such as renting stores on every high street and
employing staff in every store; causing economic pressure as well as consumer pressure (McLaren,
2012). In fact, high street stores employ 2.6 times more staff per 1 million than internet retailers
(Sacco, 2014). This obvious benefit is an attractive prospect. Consumers can look, for example, at
books in stores, and then purchase them, cheaper online, with the option of next day delivery, arriving
as soon as possible. Many bookstores consider Amazon the major threat on their industry (Bosman,
2012).

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Christmas
It is fascinating how people alter their typical shopping habits for the Christmas shop
(Hammerson, 2013, p. 2). Christmas adverts put buying gifts in the front of all minds, and clearly
people buy and spend more. Traditionally, the weekend before Christmas is the busiest time for the
high street; however Eccles and Williams (2013) believe year after year people are deserting
traditional methods to shop online. Christmas shopping is soon becoming an unsociable, dreary
experience.
According to Poulter (2013) nine in ten Britons plan on doing some form of Christmas purchasing
online. Conversely however, a similar study found 86% will buy some element of gifts online, and
overall half of respondents surveyed planned to do most, if not all of their shopping online last
Christmas (Rackspace, 2013). Fitzsimmons (2014) criticises this belief, postulating that retailers with
physical stores have the edge, even more so in December. It may be speculated this is due to
consumers worrying about delivery times, availability, and leaving their shopping last minute, driving
sales just before Christmas. Superdrug claim they expect to see the last-minute man phenomenon
drive sales of 140,000 bottles of fragrance on Christmas Eve alone (Eccles and Williams, 2013, p.5).
In addition Hammerson (2013), identifies 57% of consumers enjoy Christmas displays, ergo, being
drawn to the high street.
Fitzsimmons (2014) contradicts other findings (Capgemini, 2013), suggesting the online/offline growth
was steady until the end of November, where the high street was the biggest beneficiary. Strauss
(2013) predicted 17.5 million would leave some Christmas shopping until the last minute, hoping to
get Christmas Eve bargains. Eccles and Williams (2013) identified how high street stores such as
Gap, Debenhams and House of Fraser tried to fight the online growth; by starting their January sales
early, which did appear to attract consumers. The UK have emulated Americas Black Friday concept,
where traditionally huge discounts are offered at organisations including John Lewis, Asda and Toys
R Us (BBC News, 2013). Although this concept is offered both in store and online, many consumers
took advantage comparing and choosing for prices.
Once upon a time it would be considered faux pas to use a computer or shop online on Christmas
day. Nevertheless, 1000s now pay bills, tax vehicles and fill out their tax return online during
Christmas day (Eccles and Williams, 2013). With 45 million hours being spent shopping online
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between 24 -26

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December (Strauss, 2013), retailers have reacted to the needs of the market;

Amazon started their Boxing day sale a day early, and a record breaking 117 million visits to retail
websites were expected on Christmas day alone (Eccles and Williams, 2013).

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How do different shopping channels influence the way consumers shop?


Evidence within the literature highlights out of town floor space has risen by 30% compared to the
high street which has fallen 14% (Portas, 2011). This suggests consumers perhaps prefer shopping
centres such as Westfields, Metrocentre, or the Trafford Centre. This could be as previously noted,
due to weather conditions in the UK; with every shop under one roof, consumers do not have to worry
about cold, windy and wet conditions. Despite this, it is apparent there is a gap in the literature; whilst
many of the authors cited here recognise and focus on the effect the internet is having on the high
street, they fail to consider whether other channels such as shopping centres and supermarkets are
having a detrimental effect, or whether they are simply being considered as the new high street.
Supermarkets also are responsible for people visiting the high street less (Retail UK, 2013). This is
due to the 8000 supermarkets selling food, as well as products, which consumers traditionally brought
on the high street, such as clothing, homeware, books, stationery and flowers. (Portas, 2011).
Sainsburys is the seventh largest clothing retailer in the UK, and one third of the population is within a
15 minute drive (Latto, as cited in Holland 2014). This may be expected; it was recognised in 2010,
non-food sales were designated more than one third (34.8%) of supermarket floor space (Genecon
2011). Consequently, Not only has the number of supermarkets increased, but their penetration of
the non-food market has also extended rapidly (Genecon, 2011, p. 48).
Contrariwise, evidence suggests major retailers, including Tesco and Asda have announced
reductions in opening new large stores, and plan to divide stores, leasing to further retailers. This
perhaps it is not only the high street struggling due to the internet; the amount of consumers food
shopping online has doubled since 2009, with the number set to continue to rise (Hall, 2010).
Supermarkets do have a degree of power over the high street. However they are noting the
importance of, and reacting to, the rise in the internet, which could be potentially vital to their future
success (Aldridge, 2004).
High Street Shopping evaluation
The high street is a vital part of any town, providing vitality and employment, and a haven for tourists
and shoppers, bringing communities together; retailers are at the heart of every economy on high
streets in town centres (Retail UK, 2013; Gazette 2013).
In 2012, Essex residents were encouraged to shop within town centres, supporting the community
and protecting jobs (Gazette, 2013). On average shopping online takes women 22 hours to find one
purchase, whereas it takes as little as 3.6 hours in the shops (Evans, 2011). Therefore the time

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saving, social aspect, innovative products and staff knowledge which the high street shopping offers
needs to be acknowledged.
However, Smith (2013) speculates it is not the internet that is distracting consumers from the high
street but the stores themselves. Shoppers do not want to pay for parking when there is no guarantee
the goods required are available; stores have to acknowledge they are sending customers online, and
make the necessary changes (Loveday, 2013).
Research highlights there are ten major reasons for popular dislike of the high street experience:
expensive parking, crowds/gangs, pushy sales assistants, difficulty in returning items, queues, dislike
of using money off vouchers, it is easier/cheaper to shop online, loud music, poor customer service,
lack of training and knowledge, scruffy nature and vacant, boarded up stores (Shine, 2013).
The number of vacant stores has increased 161% in the past five years and this is expected to
continue rising (Retail UK, 2013). This is a considerable problem, it attracts vandalism and gangs,
which increases fear, and reduces the value of surrounding businesses, whilst decreasing
attractiveness and desirability (Portas, 2011). This becomes a vicious cycle, the more consumers
shopping online, the more shops are forced to close, towns therefore look scruffy, attract gangs and
the cycle continues (Loveday, 2013).

Figure 1: The downward spiral of decline on the high street. This source in based on Genecon (2011).
There have been some casualties on the high street (Woolworths, Virgin Megastores, and JJB Sports
(Centre for Retail Research, 2014). Nevertheless, it is speculated that the death of stores on the high
street will level out this year and then tail off completely (Barnes, 2013, p.1). This is due to surviving
retailers being aware, and reinventing themselves, with social campaigns, mobile apps, improving

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customer service and providing in store promotions, encouraging people to return to the high street
once more.
Online shopping evaluation
Barnes (2013) questions the reasoning why online shopping has become so popular. Many authors
(Chaing and Dholakia, 2003, Monsuw et al., 2004 and Poulter, 2013) believe one of the key reasons
is convenience. Shopping online offers pronounced convenience, regarding driving time, car parking,
the weather, queues, product reviews and recommendations and limited inventory, all of which
consumers detest on the high street (Chaing and Dholakia, 2003). Krupnik (2013) agrees retail stores
simply cannot compete on inventory selection. Online retailers can have a product in stock
somewhere else in the world and still get it delivered in days, whereas a store must have it on shelves
there and then to ensure a purchase is made.
A key reason some consumers favour online shopping is also due to price comparisons (Monsuw et
al., 2004; Palmer, 2013). 85% of consumers compare price information online (Chaing & Dholakia,
2003), although it is not evident whether these consumers continue and purchase the products online
or on the high street. Another apparent reason the internet is preferable is avoiding long queues
(Poulter, 2013), yet it could be argued, the time spent checking out, paying and waiting for deliveries
is more time consuming and inconvenient than queuing. Moreover, Fitterman (2013) believes,
purchasing a product in-store is instantly gratifying, there is no need to wait. Nevertheless consumers
can shop online anywhere, anytime including when exercising, cooking or cleaning (Chaing &
Dholakia, 2003), and they get another boost when the parcel arrives (Eckler, 2013).
Monsuw et al. (2004) identifies a consumer need the internet fulfils is anonymity, when shopping
perhaps for sensitive items. Another benefit being if there is a need for special items which cannot be
brought on a local high street, the internet can access the world to locate products, including special
sized clothing or large sized shoes (Monsuw et al. 2004, p.112); and for those with disabilities or the
elderly who may struggle to get out, the internet is greatly appreciated (Fitterman, 2013).
Literature highlights consumers are not just shopping from home, but from work as well. The founder
of clothing website, eLuxe, assumed the evening would be the busiest time for shopping, however a
dramatic spike between noon and 2 pm, when female multitaskers take shopping to new office
heights, avoiding crowds, pushy sales assistants and parking costs (Eckler, 2013, p.1). With such
busy lifestyles consumers can still get their retail therapy without leaving their desk, slightly in
contrast, it was also found one third of consumers shop in bed, with 46% of people asked making
purchases between 7pm and 1am (Poulter, 2013), but also consumers are keen to take advantage of
the ability to shop 24 hours, seven days a week.

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On the other hand, more than half (55%) of respondents studied by Rackspace (2013) admitted to
receiving online dissatisfaction and annoyance when purchasing online. 44% of those dissatisfied
abandoned their shopping, this could be viewed as a positive statistic for the high street, if consumers
shop with them instead.
The top annoyances were named as complicated check out procedures (Rackspace, 2013). Check
out must be simple, if there are too many forms, consumers tend to abandon their shopping and go
elsewhere (Adeshara, 2013). High shipping costs are also frustrating, if the delivery cost equates to
more than the savings they have received consumers are likely to leave their often impulse
purchases. However, shipping costs can often be eliminated using voucher code websites (Palmer,
2013).
Lack of product information, unawareness of security features and few payment options are all cited
as recurring frustrations regarding online shopping (Adeshara, 2013). Shim et al. (2004) identify how
previous online shopping experiences can have an impact on internet shopping. In the case of a
positive outcome, consumers are likely to shop again, however those experiencing frustrations may
disregard the internet as a successful shopping channel.
Comparison and critical analyses
Evidence suggests shopping habits are changing; the society is focussed on ease, saving money and
the most convenient way to go about day to day tasks. Therefore the internet is having an enormous
effect on the high street. With varying opinions (Smith, 2013; Loveday, 2013; Palmer, 2013) it is
difficult to distinguish whether the death of the high street (Barnes, 2013) is due to the internet.
However, it was agreed shopping on a computer at home is not the same as being amongst the
hustle and bustle of a town centre (Chaing % Dholakia, 2003; Gazette, 2013).
Some experts believe the high street is dead-for now, and soon, will become a place of coffee
houses, building societies and click and collect hubs; a different place from 10 years ago and in 10
years time it will be a different place again (McLaren, 2012, p.51).
There are still many consumers who do not buy everything online, and those who like to look and
touch their purchases, especially clothing (Barnes, 2013). Monsuw et al. (2004) and Elliot & Fowell
(2000) agree some purchases have to be looked at, smelt, sampled, or require expert assistance.
Shopping online stops many of the experiences traditional retailing offers (Li et al., 1999). Shopping
should be a communal activity, physically entering stores and handling produce and talking to
people (Monsuw et al., 2004, p.115); high streets should be a place to socialise, as well as bringing
great economic benefit to UK towns (Portas, 2011).

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How can the high street develop new strategies?


Retail UK (2011) predict that by 2018 store numbers will have fallen by 22%, approximately 41% of
town centres will lose 27,683 stores within the next five years, and online retailers will rise from 12.7%
to 21.5%, highlighting their growing dominance. The high street should be bustling with people, being
a vibrant place people choose to visit, rather than a wasted opportunity (Portas, 2011).
Traditional retailers can and are competing (Chaing & Dholakia, 2003). There are plenty of
opportunities for revitalisation (Barnes, 2013; McLaren, 2012). Retailers need to make a decision to
coexist with other shopping channels allowing traditional retailers to transform themselves (Retail UK,
2013). Research highlights consumers who use a variety of shopping channels spend 15-30% more
than those just shopping on the high street or online (Bodhani, 2012). Therefore if high street retailers
consciously introduce something the internet cannot reproduce there is potential for success (Portas,
2011).
Many of the benefits shoppers favoured from online can be emulated offline, product reviews, staff
recommendations, best sellers, affinity and brevity (Wasserman, 2009) can all be incorporated to
personalise the shopping experience (Loveday, 2013). If conventional retailers all experiment and
provide enough information for consumers to make a purchase it may not be about the high street
versus online (Bodhani, 2012).
Traditional retailers can also compete in ways online retail cannot, with sampling, experience, expert
knowledge, and sizing, retailers can entice consumers back with in-store events, offering promotions
and knowledge, which can be advertised online and on social media websites, overall providing an
enjoyable shopping experience (Barnes, 2012).
Finally, town managers should focus their efforts on making the high street safe, accessible and
attractive (Portas, 2011). And although this could be a costly investment to towns and retailers, the
current strategies retailers are adopting, are risking their overall success and survival. Some cities are
creating new solutions, Chester for example, has a free after three policy on car parking (Portas,
2011). Similarly Newcastle have alive after five, ways in which town centres are encouraging
consumers back into town centres.
Conclusion
The scale of the internet has pushed shopping boundaries, and although evidence demonstrates the
high street will never be able to compete with prices, highlighting consumers are always money
conscious, and the range of inventory held by warehouses such as Amazon; evidence suggests there
are many ways the high street can improve; focusing on experience, costumer knowledge and
specialism (Portas, 2011).

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The literature also acknowledges consumers do not focus on a single particular shopping channel
including the internet, supermarkets and the high street. Therefore the forces driving consumer choice
must be identified (Chaing & Dholakia, 2003) for the high street to be the most attractive shopping
choice and spring back from the potential death is it facing (Barnes, 2013). Although it may be argued
consumers are most driven by convenience, and therefore will shop using whichever method is most
convenient or accessible at a given time (Portas, 2011).
The internet is more influent on consumers shopping habits and new consumers are exercised by
time, with complex personal lives vast experiences and high demands, as well as being IT enabled
(Baker, 2003, p. 34). It will always be successful at selling items such as books, music and
electronics, things that are standardised and do not have to be viewed (Monsuw et al., 2004).
In contrast, Underhill (2004) believes the internet will be hindered with the fact consumers cannot
look and touch the merchandise. Underhill (2004) also agrees some consumers still enjoy entering a
bookstore, with the hope something else may catch their eye and therefore another purchase is
made.
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