Retail Management in Australia: Changing Landscape and Future Implications

This report highlights the changing retail landscape in Australia and the role of technology in the retail sector. It also discusses future implications and alternative retail store options.

Marketing
Retail Management
Student’s name
9/4/2019

Retail management 1
Executive summary
This report mainly highlights about the retailing system of Australia in 21st century. This report
mainly comprises the data about the retail landscape, which is changing rapidly and dramatically.
In this, the role of the technology is increased over time along with the product choice, which are
also becoming proliferating rapidly. Along with the usage of Omni challenging aspect, many
retailers are tapping the social media sites such as Facebook, Instagram and Snap chat which
generates the entire information about the product and the services offered by the company
through picture uploads or the videos. Other than this, future implication are also highlighted
which states that with the more advancement in the technology leads to the more success of
retailers and also generation and improvement in the retail sector of Australia.

Retail management 2
Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................3
Background Information on retail system of Australia...................................................................3
Section: 1.........................................................................................................................................4
Major changes and development in Australia’s retailing system................................................4
Section2:..........................................................................................................................................6
Key drivers of the retail format change in Australia...................................................................6
Section 3:.........................................................................................................................................7
Future face of retailing in Australia and alternative retail store options.....................................7
Conclusion.......................................................................................................................................8
Recommendations............................................................................................................................8
References........................................................................................................................................9

Retail management 3
Introduction
The Australian retailing, discounted or the department stores mainly comprises the knowledge
about the variety of the products, which are not so expensive and are easy to use. In other ways
department stores highlights the wider variety of goods for the retail sale while discounted stores
offers products on the discounted rates with the higher volume, lower profit margins strategy.
As, trend for the same was, arise after the world war II and this was all because of the lower
consumption power. At the same time, other retailers also started establishing the discounted
stores and started flourishing in short period (Tripathi, & Dave, 2013)
In case of Australian departmental stores, costa, Wal-Mart are one of the well-known
departmental stores which stand-alone store who generates or offer the additional activities such
as food courts and play areas for children and along with these they also offer parking structure
so that customers should easily do shopping and whatever he /she wants to do (Evans, 2011).
Background Information on retail system of Australia
Australian retail sector is one of the independent sectors and is among the best performing in the
world. Right from fashion to footwear’s to furniture and in electronic aspects, as small retailers
across all Australia are earning significantly more than normal from the global market. Far from
struggling, many independent retailers in Australia are healthy and thriving for the success every
day. Moreover, it is also seen that Australia retailing landscape is also changing with time and
despite of the downward sales trends retailers are fighting back to be at better position. Hence, by
seeing this all, now it is analyzed that there is a great or there is an increment and generation of
the string revenue across retailers of Australia.
Other than this, customers, technology also have played a greater role in the success of the
retailers in the long run as through this unique advantage over the global retailers Australian
retailers are offering the greater or the significant value along with the personal services which
helps in appealing to all those retailers who like to shop at locals. With the benefits of technology
and the positive governmental policies which have incentivized customers more towards local
retailers or the discounted stores. Together, it helps the Australian retailers to generate their

Retail management 4
business at better pace and along with this; it also helps in grabbing steady growth over the other
retailing stores or the departmental stores. Moreover, it is also seen that with the change in the
market size, it helps in generating more of opportunities or chances to grow for the Australian
retailers for longer period (O’Cass, & Carlson, 2012)
Section: 1
Major changes and development in Australia’s retailing system
It is seen that world with time is undergoing with the major changes those changes mainly
highlights about the digital transformation. As with the development of the technology,
customers’ expectation is also constantly evolving and due to this, business survival is also
getting more dependent over the technological aspect and majorly leads to the changing
landscape of retailers at larger pace.
Company do have major focus over the social media aspects, as by getting more affluent towards
social media such as Facebook stories, Instagram posts and stories and applications helped many
retailers to know more about their customers and target large customers base through this digital
platform. As by updating products, pictures through stories or by posting simple picture with the
product details tapped large customers. This online concept due to the technological
advancement has majorly affected the retail sector of Australia (Wrigley, & Lowe, 2014)
Other than this, the retailers are also adopting various other techniques such as Omni channeling
aspect, more exposure to the international online purchasing and selling practices are the major
ways to which retail system is upgrading. Along with this, it is also analyzed that Australian are
changing their in-store experience like, customers get full knowledge about the products and can
easily compare alternatives which in short helps ion upgrading their shopping experience of the
customers and benefits retailers for the longer period.
Other than this, when we talk about the wheel of the retailing concept, main companies adopts
this concept for their longer survival in the market. This wheel of retailing mainly comprises of
the four aspect, first one highlights about the establishing and penetration in the market in which

Retail management 5
many organization do enter into the market at the lower prices and lower status. This all because
of the adoption of the innovative procedures, this further helps in attracting the large competitors
into the market if the entry barrier is not higher enough. Second aspect displays knowledge about
the expanding the market base in which retailers target the large customers base in order to gain
the higher profits, acquire the significant market share, and earn maximum profits. Thirdly,
stabilization to attract margins aspect generally highlights about the company’s expansion and
increase its reach to attract as well as retain its ultimate customers. This is all because of the
niche aspect, which a company adopts to attract its customers. Lastly, the entrance of the
competitor highlights that they add higher quality to the products and additional services in order
to attract larger segment and bring down the original one (Zielke, 2014)
(Source: Carlson, O’Cass, & Ahrholdt, 2015)
Another aspect in retailing sector comprises of is retail lifecycle, which includes Innovation,
development, maturity stage and lastly decline of the retail sector. In Innovation aspect, business
develops and implements a plan, which is flexible, and various innovative ideas are adopted by
the retail houses to generate long-term success.

Retail management 6
Second aspect highlights about the accelerated growth in which demand for the products has
increased and this has a major impact over the sales. But other than this, company do also face
the fear of competitors which increases the tension in the market but investments level also goes
up at higher pace (Faloye, 2014).
Thirdly, maturity aspect helps in generating the newer trends of retailing in the market. Now at
this point of time, sales and profits tend to decrease. Due to the slower development, retail
market tends to reinvents itself so that they can again tend to touch the profits. Hence, at this
time, company needs to come up with the newer forms of strategies and reposition itself by being
competitive in the market (Carlson, O’Cass, & Ahrholdt, 2015).
Forth stage highlights about the decline aspect, in which retail company or the market looses it
competitive advantage for which they were targeting the larger customers base and earning
profits. Hence, further it is analyzed that the growth rate of the retail market has slow down and
with this, it also majorly affects the profits and the success for the longer run.
Section2:
Key drivers of the retail format change in Australia
As with time it is seen that convenience and personalization plays a major role in shaping out the
future of the retail and customers expectation of the Australia. Therefore by creating or
generating the shopping experience great many retail stores are thinking of competitive
advantage strategies and try to arrange surprises and delights for the customers and along with
this they are also investing in the right kinds of technologies which in future helps them to earn
or generate success for the longer period (Lewis, Whysall, & Foster, 2014)
Moreover, it is also seen that over time, mobile and internet has drastically helps in accelerating
the change and along with this, they are also challenging the traditional retailers to rethink of the
various other strategies and tap more of customers to earn profits. Nowadays it is also analyzed
that power is in the hands of the customers so for that retailers needs to be more agile while
reading the minds of the customers that what all their mindset states (Carlson, O’Cass, &
Ahrholdt, 2015).

Retail management 7
These days it is also seen that retailers are applying the internet techniques such as social media
advertising techniques and being easily connected with the ultimate customers As the
introduction of the Bluetooth with the lower energy technology and PayPal beacon and GPS
facilities helps the retailers to develop the closer relations with the ultimate customers. Such
innovative techniques to target customers help the company to increase its sales and along with
this, it also helps in generating profitability and success in long run.
Other than this, the transparence aspects also have a major effect over the retailing concept of
Australia. As due to this, customers are easily fetching information about the products, services,
brands and stores through web searches. And along with this, companies are also overcoming the
various issues which are mostly related to the products offerings or the services offerings
(Pantano, Iazzolino, and Migliano, 2013)
In last 10 years when we seek information about the retail sector of Australia, we found that
innovation, agile and being digital is new normal, in which the interplay in between the
technology, change customer expectations and advancement of the newer business model in
which they are embracing the customer led innovation which finally leads to success of
organization. In this innovation aspect mainly highlights about the mobile applications, digital
customers services and social media and voice research are the newer trends which helps in
changing the retailing system of Australia. Wal-Mart in this case, is the best example in which
over years they keep on coming up with its new diversification strategies. Which not only helps
them in targeting the larger customers base through its innovative strategies, but along with this,
it also helps them in identifying the various parts which further helps in contributing towards the
earning of the companies and its portfolio.
Section 3:
Future face of retailing in Australia and alternative retail store options
Over time, it is seen that Australian retailing system faced many changes and through those
changes, it helps them in being a success retailing system. Now for future many retail companies
are thinking of generating the shopping experience through augmented reality system, machine

Retail management 8
learning and artificial intelligence to stay for longer period. As retailers are leveraging the
technology in order to bridge a gap in between the physical stores and digital aspects. For
example, shopify AR uses the smart tool kit for the retailers to create their own AR experience in
order to display the products to consumers (Taylor, 2016)
Another aspect for future highlights about the product customization in which e-commerce and
physical stores are like offering such facilities and option to the customers. Such facilities of
customization of monogram and embroidery to fully unique color schemes majorly attracts the
customers towards the choices and due to this, helps the retailers to gain more profits and
competitive advantage gets generated (Faloye, 2014).
Same day delivery is also one of the future aspects of the retailers when it comes to online
shopping; it seems like, customers expectation for shipping time is getting faster. As amazon,
prime delivery is done in 2 days. However, in the age of instant gratification, customers want
their order delivery as soon as possible. With this, almost 51 % of ecommerce retailers offered
their delivery to the customers on same day and this is all because of the fulfillment of
technology and standards evolved (Wang, & Ha, 2011)
Lastly, retailers have also need to invest on many resources over the private label brands. As it is
seen that sale of the private label products are growing tree time faster as compared to the
branded products. As this concept helps the legacy companies to stay relevant in the landscape
where customers care is mandatory along with the quality care and affordability than a brand
name is considered (Nenycz-Thiel, 2011). Hence, it is seen that retailers are getting more
concern about the private label brand which will further helps in finding balance in between
quality and lower prices for the customers (Grugulis, & Bozkurt, 2011).
Conclusion
From the above report, we can conclude that retailing system of Australia has faced many
changes due to the change in the many aspects such as giving more emphasis over the customers
expectation, technological aspect, ethics and value based branding, social sites and visits and
using of various social media techniques in order to target the large customers base. Moreover,
retail companies are also adopting Omni channeling and due to this, retailers have more

Retail management 9
opportunities and chances to work over it and earn a lot more than expectation. In terms of
future, it is seen that retailers will adapts more advance technology, will focus more over the
private label brands , same day delivery system which will not only target the large customers
base but also helps the company to generates its competitive advantage strategy and through this
they will earn profit and success over longer period of time.
Recommendations
Foe future enhancement of the retail sector of Australia, company do need to focus on the current
market tends, wants and preferences of the customers so that the formation of the products
should be according to them and hence, through this company targets the larger customers base
and finally turns them into the loyal customers for the company.
Other than this, rather than keeping an eye over the competitors targeting strategies, each and
individual company should focus over their own competitive advantage strategies which makes
them look different from the others and hence, helps the retailers to attract more and more
customers than usual.
The retailers should keep a check over the modernization techniques and patterns, which the
well-known store adopts, and accordingly they should work over it so that it benefits both the
customers as well as the retailers.
Other than this, retailers should develop prototype and should also test the newer business model,
gather the meaningful information , feedback and learn and reflect with less tension and
resistance They should keep on trying small moves which are to be made smartly and with this,
in future they should set big things in motion.

Retail management 10
References
Carlson, J., O’Cass, A., & Ahrholdt, D. (2015) Assessing customers’ perceived value of the
online channel of multichannel retailers: A two country examination. Journal of Retailing and
Consumer Services, 27, 90-102.
Evans, J. R. (2011) Retailing in perspective: the past is a prologue to the future. The
International Review of Retail, Distribution and Consumer Research, 21(1), 1-31.
Faloye, D. O. (2014) The adoption of e-commerce in small businesses: an empirical evidence
from retail sector in Nigeria. Journal of Business and Retail Management Research, 8(2).
Grugulis, I., & Bozkurt, Ö. (Eds.) (2011). Retail work. Macmillan International Higher
Education.
Lewis, J., Whysall, P., & Foster, C. (2014) Drivers and technology-related obstacles in moving
to multichannel retailing. International Journal of Electronic Commerce, 18(4), 43-68.
Nenycz-Thiel, M. (2011) Private labels in Australia: A case where retailer concentration does not
predicate private labels share. Journal of Brand Management, 18(8), 624-633.
O’Cass, A., & Carlson, J. (2012) An e-retailing assessment of perceived website-service
innovativeness: Implications for website quality evaluations, trust, loyalty and word of
mouth. Australasian Marketing Journal (AMJ), 20(1), 28-36.
Pantano, E., Iazzolino, G. and Migliano, G., (2013) Obsolescence risk in advanced technologies
for retailing: a management perspective. Journal of Retailing and Consumer Services, 20(2),
pp.225-233.
Taylor, E. (2016) Mobile payment technologies in retail: a review of potential benefits and
risks. International Journal of Retail & Distribution Management, 44(2), 159-177.
Tripathi, G., & Dave, K. (2013) Store format choice and relationship quality in apparel retail: A
study of young and early-middle aged shoppers in New Delhi region. Journal of Retailing and
Consumer Services, 20(5), 479-487.

Retail management 11
Wang, C. H., & Ha, S. (2011) Store attributes influencing relationship marketing: a study of
department stores. Journal of Fashion Marketing and Management: An International
Journal, 15(3), 326-344.
Wrigley, N., & Lowe, M. (2014) Reading retail: A geographical perspective on retailing and
consumption spaces. Routledge.
Zielke, S. (2014) Shopping in discount stores: The role of price-related attributions, emotions
and value perception. Journal of Retailing and Consumer Services, 21(3), 327-338.