By 2025, 35 % of sales will be done online and the remaining 65 % will be done through a brick and mortar store. One in three dollars worth of transactions will not be done inside a shop.
There is good news for bigger brands because their popularity is so much in Australia that they not only do well from their brick and mortar store but also make good revenue from their online stores. As per AFR, 9 out of 10 most visited Australian shopping websites in 2018 were owned by traditional bricks-and-mortar retailers. Though of course, it is not the same for all stores. Those who are not so popular may see a decline in sales due to the growth of e-commerce.
The Australian market grew at 3.8 % in September 2018 with the sector growth being 2.6 in Southern Australia. This country is majorly urbanized and recent influxes of foreign companies have changed the landscape of the retail industry.
The Australian market has seen a steep fall in sales in 2019, with a fall of 0.1 in April and a non-food sales decline of 0.2 %. Fashion, accessories and footwear are struggling in this sector because of heavy discounts granted by fast International fashion retailers.
There has been an increasing turnover from sales in August 2019 of 2.3 % and there is a booming online retail sector in Australia. There is increasing hope for this sector as there will be a revised tax rate along with an increase in the minimum wage. This sector requires further improvement in the level of wages. There is a possibility of negative growth in the level of employment due to the recession within the sector.
Independent Retailers have the highest performance within Australia ( 504,979.85) with the country being one of the top three markets in retail trade. The average transaction value within the country is 81.15 USD, this being 15 % higher than the world average of 71.38 USD. An average retailer makes about 27,595 USD, higher than the world average by 47 %.
The online retail market shall be valued at 35.2 billion dollars by 2021 that means eight out of ten Australians will choose to shop online. The expected growth of revenue from online retail is 15.1 %. This revenue is soon to fade to 7.4 % in the expected future.
An increased amount of savings within the country has sparked a decrease in the number of visitors. Nearly, 60 % of all visitors have recorded a prior online experience. 850 native digital brands will open up a brick and mortar store in the next five years. Temporary retail and pop up shops are expected to generate 80 billion dollars per annum.
There is an increasing amount of transparency in Brick and mortar retail, and these shops are appealing to buyers through the familiarization of products. There is a strong focus on loyalty programs and product customization. Retail stores tie-up with online stores to sell goods to other parts of Australia.
Brick and mortar shops are relying on partnerships with popups and social media publications to boost sales. The advent of new technology within this sector has boosted the amount of security for this industry. There is an increased amount of customization and product choice in mortar shops through online retail. Consumers have the choice of buying online and picking up goods at a brick and mortar store through the internet.
Latest posts by Retailwire (see all)
- Australia’s Premier Airline announces more job cuts for International Cabin Crew - May 21, 2021
- Target Australia close down - April 23, 2021
- Global inclusive workplace initiative is implemented in McDonald’s - April 20, 2021