Although globally, the whole online trade industry noted a 3% decline, in Europe, the drop is much more significant. A 13% decrease is the first such situation in the 9-year history of the Salesforce Shopping Index. Moreover, the order volume in Q1 2022 has declined 17% in Europe.
What are the reasons behind this substantial drop? According to Salesforce, the main reason is inflation – customers have less purchasing power, and it’s a problem across entire Europe. The inflation rate in Germany is over 7%, in Poland over 11%, and in the UK – 9%. Regarding other reasons, we have to mention high fuel costs and the war in Ukraine.
What’s the solution? “The retailers should remove friction between physical and digital channels to attract and retain loyal shoppers,” – advises Rob Garf from Salesforce.