Six ways consumers are changing the world of retail

Consumer demand is rapidly changing retail

Australians spent $17.3 billion retail in the 12 months to June 2015.*

*NAB Online Retail Sales Index June 2015

This is equivalent to 7.1% of spending at traditional bricks & mortar retailers in the 12 months to May 2015.

Let’s look at how retailers are responding

#1 Digital engagement

Consumers expect to be able to shopeverywhere, at any time.

Retailers are responding by offering a seamless ‘omnichannel’ shopping experience.

buy

#2 Distance is dead

The internet has overcome the tyranny of distance between customers and overseas markets.

Customers expect to be able to purchase products from anywhere in the world, and retailers are making it happen.

$$$$$$

#3 Bargains and margins

Scale through sales is the key for online retailers.

Lower margins mean businesses must increase volume by winning customers. Online stores have to compensate for the instant gratification

of bricks-and-mortar retail with marketing and premium services.

Most people prefer free standard shipping, but some retailers offer customers more convenience with same

day delivery to metropolitan areas.

#4 Delivery convenience

Receiving parcels is part of the retail experience.

Better shipping and logistics allows retailers to offer more products and better manage their inventory levels, meaning customers have

more purchase options and face fewer delays.

Size 34 Size 36 Size 37 Size 38 Size 39 Size 40 Size 41

Size 34 Size 36 Size 37 Size 38 Size 39 Size 40 Size 41

Size 34 Size 36 Size 37 Size 38 Size 39 Size 40 Size 41

#5 Agile supply chains

Businesses are diversifying and globalising.

Traditional retailers are changing their mix of warehousing, adding more third-party logistics (3PL) warehouses offshore, while keeping

high volume stock closer to the customer.

#6 Warehousing

Downsizing, offshoring, and outsourcing.

Saving the company $60m*

*SmartCompany, 2015

Case study: Kmart

Kmart turned around its profitability after closing 15 of its local distribution centres.

It stores products offshore and only brings them in when needed.

Sale

Case study: OzSale

OzSale offers members exclusive and significant discounts on products, beating other retailers on price.

It then uses StarTrack and Australia Post’s unrivalled distribution network to get

products to customers quickly.

Keep up with with your customers, and they’ll stay with you.

The lesson?

Find out more about how StarTrack can help your retail business.

Call 13 2345

A business of Australia Post