| January 24th, 2012

Getting the edge in the Australian retail market

I’m probably not alone in thinking that last Christmas was anti-climactic from a retail point of view. Despite the barrage of sales that started long before Boxing Day it seemed that the only time you could see people shopping was the few days immediately before Christmas, usually the preserve of the last minute shopper.

While the December figures are not yet available, The Australian Retailers Association recently released their sales figures for November 2011. They showed no growth for the month despite interest rate cuts and early Christmas bargains.

These figures show that Australian retailers need to find new ways to encourage shoppers to visit their stores rather than leaving them to shop online or not at all. From a consumer perspective there a few things that could drive shoppers back to traditional stores:

Staying up to date

The Internet has allowed fashion savvy shoppers to see the latest collections without having to wait up to months before they reach our shores.
Online store such as ASOS have meant that consumers can buy the latest pair of boots at the push of a button, with free shipping to sweeten the deal.
But with no way to try before you buy online, retailers could benefit from making sure the latest stock is available as soon as possible.

Buying via online retail

Price

Price is a massive factor in most shopping decisions and the lower mark-ups for online stores makes shopping there very attractive. This isn’t the fault of retailers themselves; shops pay higher rents, staff need to be paid regardless of sales and then they need to generate enough profit to stay afloat.

However it isn’t just price that’s the issue here. Many stores started their sales early without great results. When Boxing Day did roll around the large department stores only saw small crowds gather to snap up bargains. David Jones only saw 500 customers in the first hour.

There is a fine line between offering bargains and causing sales fatigue. Consumers have come to expect lower prices, and pre-Christmas sales probably took the edge of the sales that began on Boxing Day.

Service and store ambience

Personal service is one of the few areas that can’t be replicated online. If a customer has a positive experience with a salesperson in a store they will be more likely to return than if they felt like they were being served by the Grinch.
The same goes for in-store ambience. One of the other attractions of shopping in store is being able to browse through the products at your own pace. Well laid-out stores that know their demographic can make the shopping experience a much more positive one.

Friendly supermarket staff

Offer something different

Stores that offer something different are more likely to grab people’s attention, and a lot of this comes down to marketing and knowing your target demographic.

Whether it’s stocking a certain niche brand or an in-store gimmick stores have to give consumers a reason to leave their laptops to venture to the shops.
While online shopping is here to stay and many people are choosing to save instead of spend, making the overall shopping experience more enjoyable could convince us to get out of our pyjamas, turn off our computers and head to the local shopping centre.

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