Telstra Report Endorses Brookes’ Statements: B&M On the Rise
Telstra has released a report that backs up comments made by Myer’s CEO Bernie Brookes last week, that bricks-and-mortar retailers are set to regain their dominance of the Australian market.
Perhaps Myer‘s CEO Bernie Brookes hit the nail on the head, when he predicted last week that pureplay online retailers have had their day in the sun, and that it was the bricks-and-mortar retailers that will be soon returning to the retail limelight. His views are supported by new research from Telstra, which shows that Australian consumers that shop both on and offline, are often making the purchases from the same retailers.
The survey data was sourced from over 800 consumers Australia-wide and it contains a lot of statistics that should make Brookes and others like him very happy. The message behind the report is that Australian consumers are defined by the omnichannel shopping experience, and this should give bricks-and-mortar retailers a lot of hope, according to Telstra’s Retail Industry Executive, Gareth Jude.
“Australian omnishoppers indisputably exist today, driven by our adoption of the internet and popularity of mobile devices,” says Jude. “It’s an enormous opportunity for retailers that, while two-thirds of people are using the internet to shop, they are also combining this with an in-store experience.”
The research report is entitled, ‘How You Can Join the Omnichannel Shopper in Transforming Australian retail’ and it offers a snapshot of local shopping behaviour across the industry.
Key Highlights of the Report:
- 66% of shoppers spend with local retailers
- Up to 89% of online shoppers also shop in-store in some categories, with more than a third shopping with the same retailer
- Men are spending more than double online, on average, than women
- Apparel and footwear products were the most commonly purchased online
“What customers really want is not either a physical store or online – they want a blended experience where they can go home for hours online and then come to the store, try things on, and go back online and have things delivered to their office,” Jude says. “It’s only the bricks-and-mortar retailers that can give them that.”
Perhaps the most interesting thing to come out of the survey is the large gender discrepancy in online spending, with men spending double than women, on average.
“We think it’s related to income – there is a huge correlation between income and online spend and men still have higher incomes than women so we think there’s a relationship – but we need to do more work on that,” says Jude.
This would also certainly explain the fact that men are being targeted more and more frequently by e-commerce websites.