Retailing System: Changes, Future, and Recommendations

This article discusses the emergence of the retailing system in Australia, major changes and developments in the industry, and the future face of retailing. It explores key drivers of retail format change, such as diversification, technology, and downsizing. The article also provides recommendations for retail stores to improve customer experience and adapt to changing demands. Course: Retail Management

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Retail Management

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Executive Summary
Due to the increasing competition, it becomes essential for the retailing firms to bring
innovation. Due to this, customers’ expectations are also frequently changes. This is the
reason due to which every organisation has started giving more emphasis on the online
channel in Australia. In the world of digital media, it is essential for the retailers to start
online channel.

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Contents
Introduction................................................................................................................................3
Retailing system in Australia.....................................................................................................3
Major changes and development in the retailing system...........................................................4
Retail life cycle.......................................................................................................................4
Wheel of retailing...................................................................................................................4
Key drivers of the retail format change......................................................................................4
Future face of retailing in Australia...........................................................................................6
Alternate retail stores..............................................................................................................6
Conclusion..................................................................................................................................7
Recommendations......................................................................................................................7
References..................................................................................................................................8

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Introduction
Retailing is said to be the process that further assist the customer in purchase the products
from the retail stores. It therefore gives focus on the retail sales elements that helps in
satisfying the customers. In the report, discussion is carried on the emergence of retailing
system in Australia (Beynon-Davies, 2018). Afterwards, it has extended to the changes that
have brought in the retailing system. In the further section, discussion has been carried on
future face of retailing. At the end of report, recommendation has been provided that will
help the organisation in improving the retail system.
Retailing system in Australia
Retailing is said to be the process where retailers directly make the sale of their products to
the customers in less quantity. Although Australia is not seen as, the hub of biggest industries
in retailing but it has some of the top retailers such as Woolworths (Farfan, 2018). It has
effectively ensured its brand image in the market of Australia. Afterwards, it has led to the
establishment of the COSTCO and Aldi in the market of Australia. Due to the changing
nature of the customers, digital channels have also added the value to the retailing system in
Australia. Retailing system has also helped the several firms to gain the higher revenue
(McArthur, Weaven and Dant, 2016).
Different types of retailing system have been prevalent in Australia such as:
 Discount stores
 Departmental stores
Discount stores tend to offer their products at the lower price as compare to the retailing
stores. Target as well as Wal-Mart comes under the most popular discount stores in Australia.
They offer the wide range of products including cosmetics and apparel. These kinds of stores
usually add the products frequent. In this way, they have high volume of sales, due to this,
they offer the products at the lower price as compare to the departmental stores.
As compare to this, departmental stores are those retail establishments that offer the wide
range of consumer goods in several product categories known as department. The sub
departments of departmental stores is organised under one roof. Usually, it includes several

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products such as electric appliances, furniture, cosmetics, stationary and books, as well as
food items. For increasing the sale of its products, they use the creative displays and
advertising for attracting customersm (Willems et al, 2017).
Major changes and development in the retailing system
Several concepts are based on the retailing. However, retail lifecycle and wheel of retailing
are two major managerial concepts that assist in knowing the developments and changes in
the retailing industry.
Retail life cycle
Retail life cycle usually includes the four cycles. It starts with the introduction phase. For
example- Woolworths was established in the year 1962. The second stage is growth stage. In
this stage, Woolworths started operating high number of supermarket chain in Australia. In
the recent time, it is at the growth stage. The third stage if maturity stage. At last, decline
stage comes (Khumalo, 2016).
Wheel of retailing
This gives emphasis on the detailing development pattern. It means that retailer when enter in
the market, it is low prices, low margin as well as low status. After the passage of time, it
gradually attains the higher positive in the market where it is serving. Aldi was also founded
in 1946. In the starting phase, it has started with the low priced products. After the passage of
some time, it is proved as the most recognised retailing store in Australia. In the recent time,
it is also challenging the key player Woolworths in the retailing market (Gottschalk, 2013).
Key drivers of the retail format change
Several key drivers are responsible for the changes in the retail format:
 Diversification is the first key driver that is responsible for the changes in retail
format. It is one such growth strategy, in which company tends to diversify its product and
activities by increasing its operations. Woolworths is one such example of diversification that
has expanded its operations in the international market. It has expanded in several countries
such as Asia, New Zealand, Europe, and Africa. Besides the diversifying of its operations, it
has also expanded its operations by initiating petroleum industry and food restaurants.
 Merger: Under this, two companies join together to do the business in a single entity.
The most significant example of merger is the retail business and Woolworths drink. It is also

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analysed that the merging business tends to increase the opportunities for the business (Boyd,
2017).
 Operations: in order to fulfil the demand of increasing population in Australia,
retailing industry is increasing their services through the downsizing of operations. In this,
companies tend to launch the new lines of products. Ij the recent time, it tends to operate with
the help of digital channels and physical channels.
 Technology: due to the advancement and rise in technology, retail industry has
changed the several activities in order to remain updated. Due to this, retail industry has also
started launching the convenient stores by expanding their stores across the world. In this
way, technology has assisted the retail industry to expand its market.
 Downsizing: It means the reduction in the size of company for fostering the
organisational growth. Several company in Australia have the retailing supermarkets. In those
departments they sell different variety of products such as fashion, home wares, fashion
accessories as well as clothing. It is also found that the shrink in the business operation is also
one such challenge in order to gain the sufficient profit. For example- Myer an Australian
retailing store was facing the challenge from the David Jones as well as some other brands.
Due to this, it profit was fall by 80 per cent. Due to this, it has downsized its business by
closing the stores in Sydney and Melbourne.
 Social media: Besides this, organisation should also take into consideration the
changing environmental rules and regulations. Due to the increasing attention of customers
toward the social media sites, it becomes significant for the customers to use several social
media sites.
 E-commerce: It is also one such element that has brought the significant change in the
retailing system. Due to the entrance of several E-commerce business like Amazon,
competition has increased to a huge level. It therefore proved to be the major driver in
bringing the change in Australia (Kehurst, 2013).
 Marketing: due to the growing number of retail industries, marketing has become a
mandatory function for the retail industries like Coles, Woolworths, and Target. It is analysed
that retail industries are facing tough competition and thus they rely on social media
marketing, ad campaign, digital marketing, and advertising.
 Physical stores: It is found that the higher changes in the current retail outlets. In order
to deliver the innovative customer experience as well as cut down the cost, retail companies
in retail time is reducing the manual need of the person. It has been shifted to the self service
in the stores.

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Future face of retailing in Australia
In the recent time, it is seen that the customers are getting more busier, knowledgeable,
prosperous as well as developing their ability to make the better judgement. After the
advancement in technology, customer’s expectation is also changing. Due to this, Chatbots
will become the future of retailing in order to solve the queries of customers quickly. This
will help the retailers to enhance the shopping experience of customers.
From the market trends, it is also come to know that the online retailing will take place in the
retailing industry. After the few years, almost all the sales will be taken through the digital
channels. This will help in enhancing the shopping experience. These channels will also
enhance the confidence of the customers over their product. With the online channel, retailing
businesses will also be able to get the opportunities to enter in the global market.
In the coming time, robot techniques will be brought by the retailing stores in order to bring
the quickness in their activities. Omni payment option will be accepted by every organisation.
It means that several payment options will be included such as cheques, debit card, credit
card. It will improve the customer satisfaction.
Alternate retail stores
In the upcoming years, retailing stores have the different options. The options are:
 Aldi
 7 Eleven
 COSTCO
Aldi has a supermarket chain based on Germany. It avails the huge profit in the market of
Australia. It is also getting huge growth in the market of Australia due to the higher trust and
reputation among the customers. Due to this, it acts as the alternative retail store in the near
future.
7 Eleven is also one such American retail chain that tends to provide the convenient stores to
the customers. In the current time, it has also launched the checkout free stores in Australia.
Due to such facility, customers are not required to wait for long time in the queue. In addition
to this, they have also launched the payment through smartphone system by scanning their
item in the camera (Nguyen and Melewar, 2016).

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COSTCO is also one such American multinational company. It offers the higher quality
products in the low p digital marketing, rise to the customers on regular basis. It also provides
the facility of easy refunds and free sampling. These factors add the value in the customers.
Conclusion
In the limelight of the above discussion, it is concluded that the retail industry is responsible
for the economic growth of Australia. Besides this, the future of retail will also offer the
several opportunities to the retailers if they will bring the technological advancement.
Competition in retail industry has also increased to the higher rate that is giving pressure on
the retailing companies to bring innovation. In addition to this, customers are also demanding
several new approaches in the recent time. It therefore requires the firms to apply new
approaches in order to find something creative for the customers.
Recommendations
Due the changing demand of customers, it is suggested to the retail industries to bring more
quickness in the delivery of services to customers. Retailers also require the platforms
through which they tend to serve the customers in better way. It is already discussed that
there will be an increase in sale through digital channels. Thus, retail stores should opt for a
store with a specific size, as it will prevent the high cost (Pinto, Dell’Era,Verganti and
Bellini, 2017).
In the recent time, it is essential for the retailing stores to give the better customer experience.
Due to this, it is recommended to the retail stores to improve the design and physical
presentation of their stores. These kinds of features also attract the customers. Due to this, the
retailing stores can do several technological advancements in order to attract the customers.
Due to this, they should also adopt such technology that will require the less involvement of
the staff for supporting the customers in store. Online retailing also provides the organisation
a competitive advantage. Besides this, organisation should also take into consideration the
changing environmental rules and regulations (Scott, 2017). This will help in satisfying the
customers.

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References
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patterns. International Journal of Electronic Commerce, 22(1), pp.98-124.
Boyd, , 2017. Myer to close stores after profit falls by 80%. [Online] Available at:
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[Accessed 2019 August 2019].
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grocery retailers’ online fulfilment centres. International Journal of Retail & Distribution
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2019].
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kehurst, G.a.A.N., 2013. The emergence of modern retailing 1750-1950. Abingdon :
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the literature. Journal of Macromarketing, 36(3), pp.272-286.

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Nguyen, B. and Melewar, T.C., 2016. Constituents and consequences of smart customer
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