Further Evidence in Support of Multichannel Retail
CBRE has released its annual report that demonstrates how some local retailers have suffered serious shrinkage in the face of heavy online competition.
While many bricks-and-mortar retailers are being seriously damaged by online trends, local retailers are beginning to fight back with their own online presence.
CBRE‘s report, How Global is the Business of Retail?, surveyed 326 retailers in 22 countries. Of those nations, Australia has the 13th most developed online market, with the proportion of online retailers rising from 19 to 26 percent in the past year.
Joshua Loudoun, Regional Director of CBRE’s Retail Services, pointed to the strong Australian dollar and changing consumer behaviour as the major drivers for the shift to online.
However, the report also found that this boom in online shopping is making real estate more attractive to international retailers seeking to get a firmer hold in the Australia market.
“Australia is in the top 10 of markets that North American retailers target and although historically we rarely featured on the radar of the major international retailers, more recently they’ve seen strong sales in their Australian stores, providing encouragement to other retailers looking to expand,” Loudoun said.
While more overseas retailers are seeking to move to Australia, so too are Australian businesses seeking out other markets in which to sell.
“We’ve also seen a number of Australian retailers expanding abroad,” said Loudon, “with brands such as Cotton On (Germany), Peter Alexander and Smiggle (Asia), Oroton (Singapore and Malaysia) and Theobroma Chocolate Lounge (UK) all opening new stores in the last 12 months. ”
Other statistics from the report:
- Australia ranked 30/73 for the countries examined in terms of international retailer presence, attracting 28.8% of all retailers included in the study. This was slightly up from 27.3% the previous year.
- Melbourne leads the capitals with 25.6% of retailers present followed by Sydney (24.3%), Brisbane (17.3%), Perth (13.6%) and Adelaide (11%).
- New Zealand placed 55th on the league table with 15.3 % of international retailers having a presence across the Tasman – with Auckland leading on 13.6% of retailers, Wellington (8.6%) and Christchurch (8.3%).
CBRE’s report captures the mercurial atmosphere of the online market in Australia as it is, with many agile business sprinting to fill the gaps left by slower, lumbering organisations. Ultimately, in the online market it doesn’t really matter where these businesses are from so long as they are able to tick all the boxes when it comes to customer service, product quality and support.