After a recent report showed a low level of growth in Australia’s physical retail sector, its author was keen to stress that most businesses are now finding success through trading online. Author: Richard Towey
After a recent report showed a low level of growth in Australia’s physical retail sector, its author was keen to stress that most businesses are now finding success through trading online.
According to fnarena.com, BIS Shrapnel’s ‘Retail Property Market Forecasts and Strategies 2012 to 2022’ study originally set out to forecast predictions in Australia’s retail property sector. However, when an annual growth rate of just 2.9 per cent over the next five years was predicted, researchers had to provide reasons for the deceleration.
Talking to franchise.net.au, report author Maria Lee stated that shopping centres in the country will see lower rates of turnover largely due to the impact of online shopping. She went on to state that retailers have long known this to be the case and have turned to offering online payment services and delivery options to their customers.
“Our online retailing survey showed a dramatic rise this year in the online offerings of the top 20 domestic retailers,” said Ms Lee. “Over 50 per cent of the top 20 now have a comprehensive online offer.
“Although that’s a great improvement, it’s still not impressive by international standards. The department and discount department stores are still trailing – although they are working on major improvements,” she went on to comment.
The study also owed the disappointing forecast to Australians themselves now branching out during their sprees, by purchasing goods and services from online retailers outside of their country.