Why Aussies prefer to shop in-store instead of online
The demise of Australian retailers has often been blamed on online shopping. But our shopping habits have revealed the real reason why some bricks and mortar stores are struggling.
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Australians overwhelmingly prefer to shop in stores rather than online, research has revealed.
But customers are walking away from retailers that don’t listen to their needs and fail to adapt, a consumer behaviour expert says.
Monash University researcher Dr Eloise Zoppos said rather than a “retail apocalypse”, there had been a changing of the guard where power had shifted firmly back to consumers.
Her comments follow the downfall of several high-profile chains including Harris Scarfe, Jeanswest, Bardot, Curious Planet and Colette By Colette Hayman.
Dr Zoppos said some floundering businesses overplayed the extent that online shopping was to blame for physical store closures.
Seven in 10 Australians shopped at bricks and mortar stores “most of the time” or “always”, latest research from the university’s Australian Consumer and Retail Studies unit has found.
The remainder favoured buying goods online.
“Surprisingly the popularity of physical stores has actually increased according to our study,” Dr Zoppos said.
“Not all retailers are suffering. Businesses that put the customer at the heart of every decision, from product design right through to staff training, are not only surviving but thriving.”
Consumers wanted friendly and knowledgeable staff, eye catching store designs that were easy to navigate, and a memorable social experience.
Product ranges had to be clearly targeted so people were not confused about whether the store was right for them.
Shoppers also expected a speedy click-and-collect option, and easy returns policy.
An annual shopper tracking survey of 1087 consumers found price was the most important overall factor, followed by quality and product availability.
Brand loyalty and the opinions of others were of least influence.
National Australia Bank analysis of retail sales via debit and credit cards, BPAY and PayPal released this week noted that high debt and slow wage growth was restricting consumer spending.
But Dr Zoppos said some retailers were flourishing despite the challenging environment.
These included Mozaic Brands, the company behind Noni B, Rockmans and Millers; and Cotton On.
Global fashion giant Zara was another leading example.
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“Visit just about any Zara store around the world and there is always a line for the change room and the register,” she said.
“Their change room policy will also allow you to take in up to 10 items at a time. This means you can take in a couple of different sizes to compare the fit as you go, and also mix and match your items.”
Forever New had a “reserve in store” system that guaranteed sizes would be in a customer’s chosen store to try on.