Changing Face of Retailing in Australia.

Running head: CHANGING FACE OF RETAILING IN AUSTRALIA
Changing Face of Retailing in Australia
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1CHANGING FACE OF RETAILING IN AUSTRALIA
Executive Summary
The primary purpose of this report is to elaborate on the changes and the developments in the
retailing system of Australia. The report talks about the drivers that has caused the changes in
the retail format within Australia. The report also discusses about the future face of the
retailing within Australia and the retail store options that the people would get in the future.

2CHANGING FACE OF RETAILING IN AUSTRALIA
Introduction
The world has undergone digital transformation and every sector is affected by the
changes taking place in technology. The technology has developed at the unprecedented pace
owing to the change in the consumer expectations. The survival of a business can be said to
be dependent on the adapting of the business to the changing landscape. The shaping of the
retail is taking place in the present time owing to interplay in between the economic factors,
social factors, changing consumer expectations and emergence of the business models
(Mortimer 2016). This report throws light on the changes and the developments in the
retailing system of Australia. The report discusses about the drivers of the change in the retail
format in Australia. The report also talks about the future face of the retailing in Australia and
the retail store options that the consumers would be able to get in the future.
Changes in the retailing system of Australia
Department store refers to the retail establishment that offers wide range of the
consumer goods in various kinds of product categories which are called the “departments”.
The department stores appeared in Australia in middle of 19th century and it was responsible
for reshaping the shopping habits of the people. Discount store refers to a retail shop that sells
products at the prices which are lower when compared to market price. The discount stores
offers wide assortment of the goods for the convenience of the people. The goods and the
services that are offered by the department stores are the clothing, accessory along with the
general merchandise (McArthur, Weaven and Dant 2016). The department stores have the
jewellery along with the household appliance that proves to be convenient for the people. The
department stores are instrumental in selling extensive selection of the merchandise and the
stores are arranged into various kinds of departments which are headed by the manager (Scott
2017). They also sell various kinds of services like the optical, photography along with the

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pharmacy services. The department stores are dependent on the self-service features and they
have the facility of centrally located cashiers. They sell the eclectic mix of the products at the
reduced prices. The discount stores sell extensive width of the merchandise and they sell the
items that are less fashionable. The pre-eminence of the retail sector was on the basis of the
urban environment which was built around the public transport.
The suburban expansion in Australia paved the path for the emergence of the
shopping centres. The developing of the shopping centres helped in prolonging the lifespan of
the department stores. The niche retailing took place in Australia and it helped in inverting
that of mass-market retail principles (Grewal, Roggeveen and Nordfält 2017). The retailers
have to keep pace with that of constant changes taking place in the field of technology. The
changes took place in the retailing system of Australia with the opening of the shopping
centres that provided a space for congregation of the people. The shopping centres provided
various kinds of shops that is shaped for meeting the needs of the market. The shopping
centres that were large-scale in Australia provided an alternative means of shopping to the
people and it proved to be superior when compared to the other forms of the distribution.
There has been growth of the online shopping in the present age and the consumers are no
longer dependent on the shopping centres along with the malls (Grewal, Motyka and Levy
2018). The shopping centres can be said to be well-positioned for appealing to the customers
and they offer the experiences along with the services which cannot be replicated in the
online platform.
Drivers of retail format change within Australia
The mergers, diversifications along with the downsizing have acted as the forces that
have helped in the evolving of the retail institutions. The operating model along with the
marketing of the discount and the department stores have changed owing to the changes

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taking place in the environment. The mergers along with the acquisitions has played a crucial
role in the evolution of the retailing within Australia. It has paved the path for the developing
of the highly concentrated market structure in Australia. The large retailers in Australia have
increased the economies of the scale with the help of mergers and the acquisitions. The
intensification of the industry competition has taken place on account of the international
retailers expanding the local presence (Chopra 2016). The chain stores have grown in
prominence within Australia at expense of that of the independent stores. The mergers can
pave the path for the increased buyer power as it has an effect on the prices along with the
welfare. The increased buyer power can create the way for the purchasing strategy that is
based on the single source by that of the merging parties (Priporas, Stylos and Fotiadis 2017).
The modern point-of-sale has helped in the opening of retail business in the present age. The
cloud-based solutions have helped the merchants in setting up the shop with the minimal
amount of the investment.
Commoditisation of internet has helped the business in emerging as the retailer in the
present age. This has helped the suppliers, wholesalers along with the manufacturers in
selling directly to consumer. The consumers in the present age want the premium retail
experiences and this makes the people in Australia take recourse to the services offered by
the supermarkets. The mobile technology has provided the perfect opportunity that has
helped in delivering the tailored shopping experiences to the customer. It has helped in
bridging the retailers and the consumers at each stage of shopping cycle that can help in
engaging the customers. The retail landscape in Australia has undergone a structural shift and
the emergence of the new technologies has disrupted retail ecosystem (Roggeveen et al.
2019). It has helped in transforming how the customers carry out the interaction with the
online and the offline stores. The business have to understand the process of leveraging of
technologies that can help in the process of better management of the business.

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The introducing of the data technology in the supply chain of retail can help in driving
the efficiencies of the retail sector (Verma, Sharma and Sheth 2016). The emergence of the
Facebook along with the social media has brought about a shift in the area of the consumer
advertising. Effect of the digital software would greatly bring about changes in the retail
sector in Australia. It has been found that 85 % of the people in Australia have the access to
the internet that would make online shopping a popular avenue of marketing in the future.
Future retailing in Australia
The lower advertising costs have helped in the developing of the independent stores in
the present age. There are established firms that are opening the smaller stores that helps the
retailers in maintaining their presence at a rate that is affordable. The established brands are
making use of the smaller format that can adhere to the needs of the people in the present age.
The smaller stores can appeal in a direct manner to the growing number of the millennials
who need the special services along with the quality products (Souiden, Ladhari and Chiadmi
2019). There are distinct retail formats in the present age that helps in targeting the distinct
customer segments that requires various kinds of skills along with the resources. The apparel
specialty stores in the present age helps in targeting the customers who are fashion-oriented
(Verhoef, Kannan and Inman 2015). The operation of this kind of stores needs various kinds
of skills like the brand building along with the merchandise selection.
Wheel of the retailing refers to a hypothesis in relation to the pattern of the retail
development when the new kind of the retailer would enter market as the low-margin
operator and move in the upmarket. It states that the retailers can start as the discount stores
but they would be able to boost the prices after establishing themselves. The smaller stores of
future can help in capturing the market share in Australia. They would be able to provide the
special services and create great quality of the products with the help of their innovative

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offerings (Miller 2018). Retail life Cycle refers to the theory of the retail competition which
brings out that the retailing institutions would pass through the identifiable cycle. The cycle
can be divided into the four stages- innovation, development, maturity and the decline. The
retailers in Australia would evolve to become the supermarkets and then with the passage of
the time also undergo decline owing to the changes in the mindset of the people.
Retailing would become different in the next ten years owing to the increased usage
of the data along with the analytics. Rising need for the personalisation along with the
customization would drive the changes in the retail sector of Australia. The customers would
be allowed to personalise the products in the future that can help in the proper engagement of
the customers. The customers in the future would be given the opportunity of gaining the
unprecedented access to the information regarding the retail stores that has helped in the
development of the retail stores (Roggeveen et al. 2019). The online shopping would grow in
future in Australia owing to the availability of the flexible services that would cater to needs
of the people. It can help in providing a great experience for the customer that can help the
retail companies in making great amount of profits. The retailers in the future would
transition into the smaller-footprint stores having the short leases that can help in supporting
the self-service facility for the shopper (Bailey 2019). The shoppers would be able to
experience the products first-hand in the future and they would be able to buy the products
with the help of the online platform. The manufacturers in the future would be able to share
the investment with the online players that can keep the brands available to the shoppers in
various kinds of channels. The omni-channel retailers would become successful in the future
that would help in providing a superior experience to the people. The regional shopping
centres would be able to take the benefit from the changes and they would be able to enhance
the offering for serving the changing demands of people (Mortimer 2016). It would be able to
help the retail firms in getting the long-term success in the future.

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Future of retail industry would be shaped by the disruptive forces like the changing
spending pattern of Australian consumer. Arrival of the overseas companies can help in
bringing a new approach to the retailing. The overseas business would enter the market and
this can help in bringing a new approach to the retailing. The retail landscape would change
owing to the changes in the preferences of the customer. Future of the Australian retail
industry would need the agility and the multiplicity of the delivery platforms that can serve
the demands of the people in the Australian market.
Conclusion and Recommendations
Digital transformation is taking place in the world and all the sectors are being
affected by the technological changes. Changes in the expectations of the customer would
bring about the change in the retail format within Australia. The shopping centres have
opened in the present that can provide a place where the people can gather and recreate
themselves. There are different shops in the market that provides the useful products and the
services to the people. Chain stores have become popular in Australia instead of the
independent stores. Mergers can help in increasing buyer power because it would have an
impact on prices of the products. The pattern of the retailing would change in the future on
account of using of data analytics. The people in Australia would be on the lookout for the
personalized products along with the services in the future. It can play a crucial role in the
engagement of the people living within Australia. Omni-channel retailers would be able to
provide a better service to the people of Australia in future. There would be agile delivery
platforms in the future that would rightly serve the people living within Australia. It can be
recommended that the retail companies should streamline the operations that can pave the
way for substantial cost savings for the firms and help the company in getting the additional
funds that they can use for spending.

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