A recent study has revealed that 25 percent of Australians expect the retail industry to be mostly online in the near future, with a further 35 percent saying they think it will happen within five years.
More than 1000 Australians were surveyed as part of the latest study from CouriersPlease, as the parcel delivery service endeavoured to find out what consumers think the retail industry will look like in the future. According to the results, the majority of shoppers are more than prepared for the shift to a digital economy.
In fact, 60 percent of Aussies expect to see most of the retail industry riding the e-commerce boom within two to five years. Of the consumers surveyed, only 15 percent said they think traditional retail will prevail, while three in four (75 percent) are fairly confident they will see more bricks-and-mortar stores close up shop in the years to come.
Respondents also indicated which products they feel most comfortable purchasing online, with books, DVDs and stationery topping the list at 74 percent, followed by technology at 59 percent, health and beauty at 50 percent and fashion at 41 percent. Homewares and furniture were among one of the lowest (33 percent), with jewellery and pets and animals ranking the lowest at 27 percent and 10 percent respectively.
It seems retailers are also concerned about what the shift to online trading could mean for their businesses, with a growing number of SME’s within the retail sector fearing the “sudden disruption of their business model”. According to the latest Scottish Pacific SME Growth Index, 25 percent of companies worry about how the changing market will impact their retail ventures.
These report findings are in-line with recent activity within the market, as major retailers like Esprit and Toys ‘R’ Us have called it quits in Australia, while other household names like Myer and David Jones have been facing declining bricks-and-mortar sales.
Meanwhile, other retailers like Temple & Webster, H&M and Just Jeans have been experiencing strong online growth over the last financial year, with each business reporting strong year-on-year improvement in online sales in recent months.
Never miss our best stories. Sign up for Power Retail’s free weekly newsletter and find our daily stories on Facebook, Twitter, LinkedIn, and Instagram.