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Halo effect of physical stores most pronounced in London

The halo effect that physical stores exert over online sales is most pronounced in London, according to new figures from consumer location specialist CACI.

The regional insight follows the publication last month of a CACI report that found that identified online sales are, on average, 106 per cent higher within the catchment area of a physical store.

Only two regions fall below the national average. The South West and the East Midlands are seeing a halo effect of 93 per cent, while all other regions are seeing between 106 per cent and 108 per cent.

“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,” says CACI Property Consulting Group director John Platt.

“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.”

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