Analyzing the Changing Retailing Landscape in Australia

This report provides a comprehensive analysis of the evolving retail landscape in Australia. It begins with an overview of departmental and discount stores, tracing their historical development. The report examines major changes driven by e-commerce, technological advancements, and shifts in consumer behavior. Key drivers of retail format changes, including demographics, economic factors, and the rise of AI, are discussed. Challenges faced by retailers in maintaining customer loyalty are also addressed. The report explores the future of retailing, including the impact of online shopping, and the need for retailers to adapt through convenience, personalization, and transparency. Recommendations for retailers to leverage technology, manage information systems, and embrace e-retailer practices are provided to ensure growth and success in the competitive Australian market.

Changing face of retailing in Australia

Executive summary
Retailing is the process which is to be followed for consumer goods or services by different
channels of distribution. In this report, the historical development of departmental stores and
discount stores is included in Australia. Retailing systems are analyzed and their changing
environment in the market. Form the last 5-10 years, major changes and development took
place in Australia in retail systems. The key drivers of a retail format change in Australia.
Retailers face various issues and challenge to retain consumers and attract new customers. In
order to increase sales and growth, it is analyzed that retailers have to adopt the latest
technology for consumers. In this report, recommendations are provided to retailers for the
growth and grabbing opportunities.

Introduction
A departmental store is a large retail trading organization. It includes the various classified
and organized departments. Different departments are included as per the types of goods
which are to be sold. In order to provide the household goods less than one roof to customers
and as per their convenience. Discount stores are those retail shops which provide the goods
at a lower price than the market price. The various discount stores in Australia are Aldi, The
reject shop, Big W, Kmart, Target and Red Dot. Discounted stores are almost similar like
department stores and these are also called as discounted stores (Ailawadi, et al., 2009). In
this report, the background information of the retaining system will be discussed and the
analysis of major changes and development will be done. The future face of retailing will be
discussed and the alternative of the retail store will be analyzed. For the retail industry,
recommendations will be provided for the satisfaction of customers (Grewal, et al., 2017).
Major changes and development in Australia retailing system
In Australia, Retailing system is undergoing the major disruption with e-commerce. Retailing
systems are changed in Australia because of technology. In Australia, retailers have adopted
the updated technology. Changes and development in retailing systems are because of
population demographics details, political factors, social, economic and technological factors.
Demographics changes and development includes the objectives, quantifiable, easily
identifiable and measurable population data. Retailing formats and systems are changed as
the customer’s preferences (Chopra, 2016). It can be gender, age, income, and employment
status and education level. In the 1970’s, the various department stores were closed and they
were replaced by discount department stores as the malls and shopping centers were the
discounted stores by 35%. After 1990, the Internet has impacted on the retailing industry and
it helped in driving product a making innovation in the retail industry. The product, place,
price and time are transformed and the perception of retailers and consumers changed after
the involvement of the internet in retail systems. Customers were able to access unlimitedly
to an unprecedented assortment of products and the purchases were not restricted to have a
physical place for shopping. The Internet helped the customers to compare the prices of
products in a fast way. It was beneficial for retailers as e-commerce helps the retailers in
optimizing the inventories by selling the goods on profit margins. Internet helps the retailers
in growth and development in retailing (Knezevic, et al., 2011). Online shopping helped the

consumers to buy the goods and services directly from different sellers over the internet.
Website helped the consumers in purchasing the products by visiting different websites and
vendor’s alternatives can be analysed by buyers by using a shopping search engine as it
shows the availability of product and prices at different e-retailers. Now the customers are
able to shop from different retailers easily and websites can be accessed in any device. In
retail industry, the changes and development is taking place because of e-commerce. Rise in
online shopping is increase day by day, every generation is expecting and convenient to buy
online (Krafft and Mantrala, 2006). Many changes took place in retail industry of
departmental and discounted stores. Departmental stores provide the wide range of products
to consumers at one place and they can fulfil all their requirements and products are available
at reasonable prices. Departmental stores provide the products on wholesale prices where the
other local retailers provide the goods on MRP. A departmental store provides the various
benefits to consumers in way of prices and availability of products at various locations. It is
convenient for consumers to purchase the products and departmental stores can provide the
additional service and offers to attract and increase the sale of products. In departmental and
discounted stores the consumers can check the expiry and manufacturing dates as it will be
beneficial for the customers to buy the right products (Ggrewal and Levy, 2007).
Key drivers of the retailing format change
The retailing format is changed because of eCommerce in Australia. Ecommerce is taking
place effectively and it is estimated that the market value of e-commerce will be $35.2 billion
dollars till 2021. People prefer to shop online as it is analyzed that out of 10 Australians 8
buy online. The e-commerce industry is expected to increase revenue growth by 15.1%.
people prefer to buy online because of the availability of products as everything is available
online and people do not want to spend the time of retail shopping (Grewal, et al., 2017).
Artificial intelligence helps retailers to stay competitive in the market. In large enterprises,
machine learning, big data, and AI power help in expanding the business. Information
systems are implemented in retailing as the information systems are tools, software, and
hardware which help the retailers in achieving success in a dynamic environment (Fraser and
Zarkada-Fraser, 2000). An information system helps the retailers in planning, controlling
inventory, managing budgets and setting goals and recording daily transactions and logistics.
Convenience is the key driver for the retail format change and customers require the

convenience for experiencing shopping. Mobiles and the internet are also the key drivers for
the retail format change and development in retailing. Convenience helps in changing and
innovation in the retail space. The format has been changed for the growing trend which to
shop anytime and anywhere by using mobile devices as it is the desire for convenience for
consumers. A key driver of the retail format change is economic growth demographics, credit
availability, supply chain (Verhoef, et al., 2010). AI and machine learning are the main for
building blocks for retailing growth. For the analysis of retail growth is an integral part of the
marketing mix.
In retail format change, retailers face challenges in order to meet the expectation of
customers. It is necessary for keeping up with the change in customer expectations. In the
retail market, it is necessary to maintain customer loyalty as the customer experience is a key
factor for creating loyalty (Myr, et al., 2008). Different formats are included in the retail
industry like departmental store, discount store, supermarkets, hyper markets, Kiosks. It is
easy to entry in retail industry but necessary to update technology as per customers
requirement for existence and growth in retail sector.
The future face of retailing in Australia and alternative retail store options
In Australia, the future of the retail industry will shape by disruptive forces like the change in
spending patterns of the customers and the arrival of companies form worldwide as they may
bring the new approaches to the retailing system. They may face the disruption. The
expectation of consumer grows and evolves in changing behavior because of technology. It is
analyzed that the retail industry in Australia requires the multiplicity and agility of delivery
platforms as it will help in leaving non-responsive retailers. Future of retailing may face
issues in Australia. In the future, convenience will helps in becoming more transparency in
retailing (Franco, et al., 2009). Transparency will be more while comparing prices between
competitors selling the same goods on their websites. Convenience helps the retailers to
provide the seamless retail experience in various channels, offers, and marketing information
which is personalized. For making retailing and shopping more convenient for consumers in
the future as the innovation can be included like mobile shopping apps, big data capabilities,
smart kiosks, and chatbots. Convenience and personalization play a crucial role in shaping
the future of retailing systems. Some people prefer to experience retailing as they have a
craving for physical experience.

Retail cycle chain includes the entry phase, trading up phase and vulnerability phase. At the
entry-level, the prices must be at low margin and the prices must be low, the services which
are provided to customers at the entry phase are low-end facilities. Trading up phase requires
moderate prices and the facilities are better. The merchandise is of increased quality. In
Vulnerability phase, the prices are high and the facilities are luxurious. It includes the
introduction, growth, maturity and decline phases. In Australia, the retail industry is facing
disruption as the businesses from the overseas market are entering and following the new
approaches for retailing (Marshall, et al., 2000). Advanced technology affluence customers
more and their expectations are evolving and the behavior is also changing to buy the things
from departmental and discounted stores. In the retail industry, the threats and opportunities
for discount stores are as the discount is becoming prevalent in many stores and the new
product line has come from the last few years. Because of rising competitive pressures,
increased industry consolidated is anticipated. In Australia, the future of departmental stores
is threatened by e-commerce like Amazon. E-commerce is taking place of departmental
stores and discounted stores as the Amazon provides the products on discounts and offer
products on convenience to consumers. In the future, consumers will not prefer departmental
stores because of the lack of investment and innovation (Shafer, et al., 2013). Customers find
the new trend online and departmental stores as an out of fashion trend. In stores, sales are
declining from last few years and expected to decline as the customer are not preferring
retaining over e-commerce. Retailers also prefer to sell online to the consumer for making
profits and growth in business. In the retail industry, it is necessary to provide goods to
consumers on time.
Technology evolution has a major impact on the Australia retail industry. It is necessary for
the retailers to follow the desires of the customer for their satisfaction. Customers are
becoming increasingly comfortable while shopping online over the internet. It is analyzed
that technology is a catalyst in changing the consumer’s attitude and behavior. Consumers
find all the information about the brand's product, performances, and pricing which helps in
enabling consumer empowerment (Varadarajan, et al., 2010). In the retail sector, technology
is a new trend which must be adopted by the consumer in departmental stores or discounted
stores. Retailing systems will be different in the next 5-10 years as these stores will not be
preferred by consumers. The face of the Australian retail industry is changing (Wood, 2002).

Conclusion and recommendation
In order to conclude the report, it is analyzed that the retailing system is changing in
Australia. Retailers adopt the latest technology for customer satisfaction. The areas which are
to be considered in retailing are technology and tools, offer decisions on merchandising,
engagement and consumption, usage and collection of bug data and profitability and
analytics. It is recommended to retailers to update the management information systems in
departmental and discounted stores. E-retailers format is the recent format for selling the
products online on the internet. The most popular retail store is Amazon as the buyers are
convenient to buy the products any time. E-retailers provide a wide selection of products to
choose from and alternatives are also available online. It is necessary for traditional retailers
to adopt e-retailers practice in business for running and growth in the retail industry.

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