Amazon UK sales growth slows as competition step up their game
Monday 03 February 2014
Amazon has suffered a slowdown in Britain, with revenues rising only 12.6 per cent to £4.5 billion last year, the London Evening Standard can reveal.
Analysts said Britain’s biggest online retailer was feeling the squeeze as traditional players such as John Lewis and Dixons raised their game — particularly with “click and collect” services.
Accounts filed by the US parent company show Amazon’s UK sales were $7.29 billion (£4.46 billion) — a rise of around $800 million on a year earlier. British revenues rose by $1 billion to $6.48 billion in 2012 and by $1.4 billion to $5.35 billion in 2011.
Taking into account changes to the dollar-sterling exchange rate, UK growth is estimated at 14 per cent last year on a like-for-like basis — down from 22 per cent in 2012 and 31 per cent in 2011.
“The competition is a bit stronger for them in electricals,” said independent retail analyst Nick Bubb, pointing to Dixons’ decision to match Amazon on price and John Lewis’s move to offer “click-and-collect” at its Waitrose food stores.
“What has been a drag is the books and entertainment market is pretty mature,” added Bubb, who reckoned falling CD sales and other traditional entertainment products — once at the heart of Amazon’s business — have pushed down on revenues.
Amazon remains Britain’s biggest online retailer, but Bubb said "mathematically, arithmetically, it gets harder to keep growing" at double-digit rates.
The web giant has come under fire for tax avoidance because it processes sales in Luxembourg but there in no sign the row has hit the UK. Amazon had a foreign tax bill last year of just $173 million on $30 billion of international sales.
Amazon declined to comment.
- 1 Rice Bucket Challenge: India's take on the Ice Bucket Challenge 'for Indian needs'
- 3 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 5 Teenager dies after suspected ice bucket challenge goes horribly wrong
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
Matt Damon uses toilet water in ice bucket challenge to stress sanitation issues in developing world
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Rubble Bucket Challenge: Ice Bucket Challenge adapted in solidarity with Gazans whose homes have been destroyed in conflict
Car tax disc changes: Make sure you know the new rules from 1 October or risk £1,000 fine
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
Jeremy Clarkson is a cultural tumour and needs to be removed, says comedian Frankie Boyle
Air strikes? Talk of God? Barack Obama is following the jihadists’ script after James Foley beheading
- < Previous
- Next >
iJobs Money & Business
£23000 - £26000 per annum: Ashdown Group: Account Executive / Client Services ...
£36000 - £38000 per annum: Ashdown Group: Executive PA to CEO & Executive Dire...
£25000 - £28000 per annum: Ashdown Group: Generalist HR Administrator - Tunbri...
£45000 - £75000 per annum + benefits+bonus+package: Harrington Starr: Senior C...