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Amazon Grabs 25% of Xmas Packaged-Media Spend in the U.K.

26 Jan, 2015 By: Erik Gruenwedel

Brick-and-mortar retail still better at driving consumer impulse purchases

Amazon for the first time captured 25.6% of consumer spending on packaged-media entertainment in the United Kingdom for the 12 winter retail weeks ended Dec. 21, 2014, according to new data from Kantar Worldpanel. The e-commerce giant captured 24.8% during the prior-year period.

Packaged-media entertainment includes movies, TV shows, video games and music CDs. The U.K. retail market is the third-largest globally for home entertainment.

Amazon was bolstered by the fact nearly 40% of media entertainment purchases are done online, which is up 3% year-over-year in the U.K.

Nonetheless, a third of store entertainment purchases were bought on impulse, creating an additional £119 million ($179 million) for retailers, but when shopping online this proportion halved, according to Kantar.

The London-based research firm said retailers need to identify ways to encourage impulse purchasing online, particularly as e-commerce and web browsing consume so much user time.

“While consumers' average online spend increased 6% this Christmas, they still spent less than they did when shopping in physical stores as retailers struggled to get them to shop impulsively online,” Fiona Keenan, strategic insight director with Kantar, said in a statement.

Top British physical media retail stores included supermarket chain Tesco (which recently sold digital platform blinkbox) with 14.7% market share (up 0.1%), HMV at 13.9% (up 0.5%) and Game Group at 10.8% (up 1.4%).

Amazon reports fourth-quarter results Jan. 29.

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