Web sales are clearly becoming a priority at businesses across the country – because managers and organizations everywhere are realizing that sales at online credit card payment processing pages may someday be far more significant than in-store sales.
For example, Pier 1 recently revealed to investors and analysts that it will focus on boosting its web sales in coming years, according to a recent Internet Retailer report. The company now sees 4 percent of its total sales come from the web, accounting for roughly $70 million in annual online sales. However, the company is currently working to make web sales account for 10 percent of its sales in the coming years. That’s because it expects that, in the long-term, web sales can account for more than half of all its revenue.
“We are well on track with our goal to have 10 percent of our business coming from e-commerce by the end of fiscal 2016 as set out in our three-year growth plan,” Alex Smith, CEO of Pier 1, said during an earnings call, according to Internet Retailer. “Although we have not yet fully realized the efficiencies of scale and experience, we can already see that our online business will at the very least be as profitable as our stores.”
Total sales at Pier 1 increased by roughly 4 percent during the fiscal year 2013. However, comparable-store sales only increased by 2.4 percent, illustrating how online sales are already playing a significant role in any growth obtained by the organization. The company is aiming to boost its web sales even further by tying its store locations closer to the online shopping experience, Smith said.
“We plan to make ordering from Pier1.com even easier in the stores,” he told investors, according to the news outlet. “We have been piloting the use of tablets in-store and plan a rollout during fiscal 2015. Our ability to leverage our stores in this way is a significant competitive advantage.”
Web sales at other organizations are also increasing rapidly, further illustrating the importance of mobile and online debit card and credit card payment processing terminals for modern retailers. MSC Industrial Supply, for example, recently reported that its web sales increased roughly 26 percent year-over-year during the first quarter of 2014, according to another Internet Retailer report. Total net sales increased by only 16.5 percent during the same period, proving that web sales are growing much faster than in-store sales for most organizations.Back To Blog