Study: Retail’s Not Dead As Aussies Flock Back To Bricks & Mortar In Record Numbers

Study: Retail’s Not Dead As Aussies Flock Back To Bricks & Mortar In Record Numbers
SHARE
THIS



In excellent news for Westfield shares, a new study has found that Aussies are flocking back to bricks and mortar stores in huge numbers. In fact, we made 90 million for visits in the 2015-16 financial year than we did the year previous.

However, the study by Roy Morgan Research wasn’t all rosy for retailers. It showed that bricks and mortar stores are only now starting to claw back the visitation levels that online shopping decimated over the past five years.

In fact, the numbers are still well down on five years ago (by some 100 million trips, despite Australia’s growing population), it has shown signs of a turnaround more recently.

In the financial year to June we made a combined 1.43 billion trips to department stores and discount stores, hardware stores and homeware stores, clothing stores, music stores and newsagents.

The graph below shows our visits to particular categories and it showed visit to music stores as static and the numbers actually fell for newsagents.

Screen Shot 2016-12-05 at 10.20.49 am

Over recent years, shopping centres have invested heavily in “retailtainment” where customers go to be entertained (cinemas, eateries) as much as they do to shop. And that could also be a reason for the increase in foot traffic.

But all this doesn’t mean we’ve lost our appetite for online shopping either. The Roy Morgan study found in an average four weeks, 43 per cent of the population make at least one purchase via the internet, spending $3.2 billion between them — equating to $41.3 billion last financial year.  This represents an increase of 9.75 per cent on the amount spent during the 2014/2015 financial year.

Retail products account for almost $20 billion of Aussies’ total online spend. The rest goes on travel ($16.4 billion) and entertainment and leisure ($5.4 billion).

According to Roy Morgan, the fastest growing online category is is baby and nursery products. Due primarily to a surge in eBay, purchases in this category are up almost 50 per cent in just 12 months. Admittedly, this growth is from a small base— from $180 million per year to $260 million.

Screen Shot 2016-12-05 at 10.21.26 am

Commenting on the study, Roy Morgan CEO, Michele Levine, said: In 2008, when Roy Morgan first focused on retail in a State of the Nation report, we asked our audience and readers to ‘imagine a world with no shops’. Back then, the burgeoning digital age and rise of online shopping appeared to pose a serious threat to traditional bricks-and-mortar stores.

“These days, bricks-and-mortar stores are anything but traditional. To survive in these changing times, retailers have had to develop a more omni-channel approach, so customers can choose how they shop with them: online, offline or a mixture of both.

“And they’ve been successful: just over a third of Australians’ internet spending goes to the online channel of ‘traditional’ retailers (as opposed to online-only stores). Considering that traditional retailers’ share of the online market was close to zero in 2010, this shows the progress they’ve made.

“However, given that Aussies are spending more on experiences and less on discretionary commodities than they were just 12 months ago, bricks-and-mortar retailers now face the challenge of turning this enhanced shopping experience into actual purchases. Especially with further competition anticipated by several more overseas retailers with Australia set firmly in their sights,” she said.

 

Please login with linkedin to comment

Latest News

Why The “No” Campaign Is Just One Long Slippery Slope
  • Opinion

Why The “No” Campaign Is Just One Long Slippery Slope

Not exactly your typical marketing/media piece, but here playwright Ron Elisha (pictured below) explains the damage done by the “No” campaign and the now infamous skywriting on a recent blue-sky Sydney Sunday… My daughter is crying. It’s not that she’s fallen over and barked her knee. Nor is it the trauma of immunization, or the […]

Opinion

by B&T Magazine

B&T Magazine
QMS Goes West With ‘The Leeder’
  • Advertising
  • Media

QMS Goes West With ‘The Leeder’

QMS Media continues to expand its digital portfolio across Western Australia, switching on an iconic billboard in the heart of Perth. Following the launch of two new digital billboards in the major WA regional centres of Bunbury and Kalgoorlie in recent months, ‘The Leeder’ further delivers on QMS’ digital expansion strategy out west. Positioned at […]

PR Firm Text100 Wins NetApp Account For APAC
  • Marketing

PR Firm Text100 Wins NetApp Account For APAC

Global marketing communications agency Text100 has announced it been appointed by data management company NetApp to drive its brand transformation effort across the Asia-Pacific (APAC) region. Following local competitive pitches conducted across the region, Text100 has been appointed as the APAC lead agency out of Singapore, and as the local agency of record in Australia, […]

MFA Awards 2017 Winners Revealed!
  • Advertising
  • Marketing
  • Media

MFA Awards 2017 Winners Revealed!

B&T once again donned the tux, applied the Brut, and primed the liver for last night's MFA Awards in Sydney.

Concrete Playground Launches Voice-activated Nightlife Guide With Google Assistant
  • Media
  • Technology

Concrete Playground Launches Voice-activated Nightlife Guide With Google Assistant

Digital publisher Concrete Playground has unveiled a new app that helps Millennials plan their night out using voice control – the first of its kind to become available in Australia. Concrete Playground’s Guide to Tonight now works with Google Assistant, making it available on a range of Google devices and helping people to decide what […]

Digital Agency Inlight Secures Two Key Client Wins
  • Marketing
  • Technology

Digital Agency Inlight Secures Two Key Client Wins

Independent agency Inlight has announced it has won the digital account for Benetas, a not-for-profit aged care provider in Victoria. Following a competitive pitch process, Inlight was chosen to handle Benetas’ new website design, build and ongoing optimisation. Richard Barker, marketing manager at Benetas, said: “We wanted an agency that could be our true digital […]

AMI Awards 2017 Winners Revealed!
  • Marketing

AMI Awards 2017 Winners Revealed!

With almost 30 awards handed out, B&T predicts plenty of numb bottoms at last night's AMI Awards in Melbourne.

Clems Sydney CEO Andy Pontin Quits
  • Advertising

Clems Sydney CEO Andy Pontin Quits

Sure, B&T flashed the news of Andy Pontin quitting this morning. White lies aside, he's actually still got six months.

by B&T Magazine

B&T Magazine
Adobe MAXes Most Creatives In A Room Record
  • Advertising
  • Media

Adobe MAXes Most Creatives In A Room Record

B&T's journo is reporting live from the annual Adobe Summit in Vegas. Although, "reporting" is somewhat of a stretch.

Opinion

by David Hovenden

David Hovenden
Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses
  • Marketing

Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses

The Australian College of Marketing is collaborating with the Digital Women’s Network to bring new short courses aimed to provide the latest skills across all aspects of the Digital landscape, kicking off in Melbourne and Sydney in 2018. Course content will focus around various topics related to the digital marketing landscape. All courses will run […]

Man working at office desk, looking at computer and scratching head
  • Technology

Where Are Digital & Tech Skills & Salaries Headed?

The rapid pace of technological change in the digital sector is seeing demand for those with the right skill sets outstrip availability, both locally and globally. The individuals who have kept their skills up to date are being well-rewarded financially. Now, Digital + Technology Collective’s expanded annual Skills and Salary Survey will put some numbers and context […]

Disney & ESPN Unify Sales & Partnerships Teams
  • Advertising
  • Marketing
  • Media

Disney & ESPN Unify Sales & Partnerships Teams

Disney and ESPN have formed an even closer bond, announcing a new alignment of the two properties through their media sales and partnerships teams. Instead of entering through three doors, Disney ESPN Media Sales & Partnerships will give media buyers and marketers a refined, singular point of entry for Disney, ESPN Digital and Maker. Nik […]

by B&T Magazine

B&T Magazine
Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends
  • Advertising
  • Marketing

Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends

Sydney-based adtech start-up Muzaara has announced a new strategic partnership with performance marketing platform Commission Factory. Together, Muzaara and Commision Factory are providing SMEs with a secret weapon to skyrocket their online brand visibility and effectively manage and maximise their online advertising campaigns. This partnership will allow both online marketing companies and their impressive roster […]

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard
  • Campaigns
  • Marketing
  • Technology

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard

Breakfast cereal manufacturer Kellogg’s has joined forces with Shazam and digital agency Orchard to deliver a first-of-its-kind augmented reality (AR) Halloween Trick or Treat experience for families. The campaign, which leverages Shazam’s visual recognition platform and recently-launched AR platform, sees Kellogg’s pilot the replacement of physical gifts in cereal packs with a digital experience that […]

Kraft Heinz Appoints Cummins&Partners As New Creative Agency
  • Advertising

Kraft Heinz Appoints Cummins&Partners As New Creative Agency

Kraft Heinz today confirmed the appointment of Cummins&Partners as its new Creative agency after an extensive pitch process. They will be responsible for brand strategy and integrated creative across the expanding Kraft Heinz portfolio including Kraft, Heinz and Golden Circle. A Kraft Heinz spokesperson said: “After an exhaustive search involving a competitive pitch, we have made […]