The future of retail is heading onlineBY Australian Retailers Association
Australian consumers predict a shift to online retail within the next 5 years.
As online shopping is becoming the chosen preference for Australian consumers, this year has proved challenging for bricks-and-mortar stores, with the closure of Toys ‘R’ Us, Gap, Esprit and selected Target stores amongst the latest casualties. Australians have become accustomed to these closures, with 59% of consumers predicting that retail will be operating online within the next 2-5 years.
These findings are derived from leading parcel delivery service CouriersPlease (CP), who conducted a survey based on a panel of 1021 Australians who made at least three online purchases in the last six months. The purpose of the survey was to discover respondents’ predictions on the future of the retail industry.
The surveys also indicated that 75% of respondents believed Australia will see more closures of bricks-and-mortar-stores within the next two years. A further 25% motioned that the industry is shifting online, with 35 % predicting this to happen in the next five years and a mere 15% disbanding on the idea of a transition to online.
The survey asked which retail categories consumers would purchase online, with 74% of respondents purchasing Books, DVDs and stationery as the top preference. Whilst this suggests that consumers feel more confident purchasing lower-cost items online, Australians are willing to purchase larger ticket items, with 59 per cent of respondents indicating they would happily buy technology products online.
Results also revealed that 64 % of millennials between the ages of 19-29, are more content with shopping online for fashion compared to 25 % of baby boomers.
However, there are some categories consumers aren’t willing to purchase online. Most respondents said they would not purchase pets and animals from the internet, with 77% not happy to purchase homewares and furniture shopping online, a further 73% are not going online for jewellery, and 63% would not shop for tools, hardware and motor parts online.
About The Australian Retailers Association
The ARA aims to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. The ARA is passionate about supporting careers in Australian retail industry and secure skilled staff to ensure the longevity of Australian Retail. By implementing these service strategies into your business, your business will thrive amongst digital and bricks and mortar competitors. Service is key to the future success of retail and therefore offering a positive experience will ensure customer satisfaction, loyalty and the longevity of your business. Visit www.retail.org.au
ABOUT THE AUTHOR
Australian Retailers Association
Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association representing Australia’s $310 billion sector, which employs more than 1.2 million people. As the retail industry’s peak representative body, the ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.