Insight: CACI research unveils that the impact of online halo effect is most prominent in the capital

CACI, the consumer and location intelligence specialist, has revealed that brands in London witness the largest boost to online sales as a result of the halo effect of physical stores.  The regional insight follows the publication last month of CACI’s report that identified online sales across the UK are an average 106% higher within a physical store’s catchment.

According to the latest study, only two regions fall below the national average, with both the South West and East Midlands seeing a halo effect of 93%.  Every other region in the UK experiences an uplift of between 106%and 108%, showing that most of the country shares similar characteristics to the capital.

Commenting on this additional insight, John Platt, director of CACI property Consulting Group, said: “London – a global leader in technology – has the most significant halo effect at 110%, but this is not as far ahead of the rest of the UK as might be assumed. While the South West and East Midlands are 13% below the UK average, possibly due to customers maintaining more traditional shopping habits, the halo effect in these areas still delivers 93% more online sales for brands that have used bricks and mortar to complement their online presence.

“Our research into the regional differences in the halo effect highlights once again that, while the function of the physical store is changing, it still plays a significant role across the nation in driving retailer performance  This is great news for brands and landlords alike.”

The regional halo effect research is the latest in a series of industry insights published by CACI as it works with landlords, retailers and leisure operators to help them better understand changing consumer behaviour.  Earlier this year, CACI revealed the positive impact festivals have on driving consumer spend, highlighting the Edinburgh Fringe as effectively delivering a second Christmas, in terms of consumer spend, for the city.