While some say Australia is in the midst of a retail apocalypse, others disagree, saying shopping power is back in consumers’ hands.
With more than 300 stores flagged for closure in the early part of 2020, there is lingering uncertainty about the future direction of Australia’s retail landscape.
However, as stores such as Ishka and Collette by Collette Hayman are closing, many other popular brands are booming.
Dr Zoppos, a consumer behaviour expert from Monash Business School’s Australian Consumer and Retail Studies (ACRS) unit in the Department of Marketing, says retailers who don’t listen to their customers and fail to adapt quickly enough will pay the price―literally.
“Customers are seizing control of the retail landscape and those retailers not up to the changes proposed by their loyal shoppers will be left behind,” Zoppos says.
A recent ACRS 2019 Omnibus Tracking Report found Australians continue to buck the global trend and shop in-store rather than online.
More than 70 per cent of respondents to the annual survey said they either frequently shopped or preferred to shop in bricks-and-mortar retailers―a seven percentage point increase from 2018. Just three per cent of shoppers said they always bought goods online.
Three-quarters of Australian shoppers also indicated they would use the bricks-and-mortar stores in a similar fashion across the next 12 months, a slight increase on 2018.
Price continued to remain the most important factor for shoppers (86 per cent), followed by quality (67 per cent) and product availability (59 per cent). Brand loyalty and social sustainability were the least important factors.
“The power is back in the hands of consumers. The evidence shows Australians prefer to shop in physical stores and want to support businesses of all shapes and sizes,” Zoppos adds.
“Retailers can’t afford to take this support for granted and must continue to provide a great in-store experience for consumers.
“Friendly and knowledgeable staff, and eye-catching and easy-to-navigate store design, can help create memorable experiences that customers can share with their friends and family after their purchase.”
