Marketing Report: Changes in Australian Retailing System

This report provides a comprehensive analysis of the Australian retailing system, examining the key drivers of change, including economic pressures, technological advancements, shifting consumer expectations, and the rise of new retail channels. It details significant developments such as the growth of online retailing, the impact of e-commerce, deep discounting strategies, and the increasing emphasis on promotional activities. The report further explores the future face of retailing in Australia, highlighting trends like automated checkouts, facial recognition technology, robot assistants, and omni-payment options. It also discusses alternative retail store options, such as drive-through pick-up locations and the potential of online retailing as a major exporter. The conclusion emphasizes the need for retailers to adapt to changing customer needs, embrace innovation, and consider environmental regulations, recommending strategies like digital marketing, improved store presentations, and global brand marketing to ensure future success in the competitive Australian retail landscape. The report's findings underscore the dynamic nature of the retail industry and the importance of continuous adaptation.

Running Head: RETAILING SYSTEM 1
Marketing

Running Head: RETAILING SYSTEM 2
Executive Summary
In the present time, retailing stores become significant due to the availability of wide variety
of products of products in one store. Several changes have been seen due to the changing
expectations of customers. This is the reason due to which every organisation has started
giving more emphasis on the online channel in Australia. This has led the organisation to
become technology enabled. In addition to this, competition also increased in the Australian
supermarkets due to which new firms are coming with innovation and creativity in their
services. In future, mobile technology will take place in the retailing business.

Running Head: RETAILING SYSTEM 3
Contents
Brief introduction about the retailing system of Australia....................................................................4
Key drivers that has caused changes in the retailing format of Australia..............................................4
Key changes as well as developments in the retailing system of Australia............................................5
Future face of retailing in Australia and alternative retail store options...............................................6
Conclusion and recommendations........................................................................................................7
References.............................................................................................................................................8

Running Head: RETAILING SYSTEM 4
Brief introduction about the retailing system of Australia
As compare to the past years, Australian retailing system has been change due to the
economic pressure or the shift in the buying habit. Previously, retailers were able to gain the
loyalty from customers. Departmental stores have also shifted as the retail innovators. Due to
the development in the shopping, departmental stores are getting the powerful competitor.
For example- Coles in Australian supermarket have seen the expansion by launching the
Kmart in 1969. From the past few years, several changes are seen in the retailing
supermarket. Customers are also giving more preference due to the healthy life (O’Mahony
and Lobo, 2017). Due to this, customer’s expectation has been shifted to the better and
healthier quality food. In the report too, discussion is carried on the retailing system by
analysis the significant drivers that have caused the changes in retailing supermarket. In
addition to this, future face of retailing has been discussed.
Key drivers that caused changes in the retailing format of Australia
It is true that the retail industry of Australia has been changed due to the changes in
economic, technology, business models, and changes in expectations as well as due to the
emergence of several new channels. The major change in retail format has occurred due to
the technological advancements. Customers demand has also shift due to the advancement in
technology. From the offline supermarkets, retailing supermarkets have started giving
emphasis on the mobile and online purchasing. From the last few years, online retailing has
expanded its wing in the retailing supermarket. It is changing due to its several shopping
advantages (Etumnu et al, 2019). In the 21st century, online retailing has paved the way of
success. Besides this, E-Commerce has also started when Amazon has entered the Australian
market. This has also increased the competition toward E-Commerce business. In addition to
this, customers’ expectations have also changes on a huge level. It proves to be the major
drive that has caused the change in retail format of Australia. Due to busy schedule of people
now a days, they tends to prefer online purchasing (Badenhorst-Weiss and Weber, 2016). It
saves their time to a large extent. Due to the spending of people on online marketing, the
demand of physical supermarket has reduced at a few percentage (Willems, Smolders,

Running Head: RETAILING SYSTEM 5
Brengman, Luyten and Schöning, 2017). In the recent time, several brands have come on the
way with several innovative ideas. It has led the other firms also to bring various changes in
their retail format (Sutton-Brady, Kamvounias and Taylor, 2015).
Mobile technology has also taken its place in the recent time. it has helped the retail
industries to deliver the best shopping experience to the customers. In the recent time, social
media is also embracing several changes due to the increasing attention on the part of
customers. The remarkable changes in the Facebook and several other social media sites,
retailing supermarkets has taken the significant shift. Therefore, several significant drives are
bringing the shift in the retailing shift of Australia.
Key changes as well as developments in the retailing system of
Australia
In the recent time, several changes have occurred in the retailing of Australia. all the changes
have occurred due to the changes in technology as well as emergence of new channels. Deep
discounting has also become significant due to the increasing competitive edge. Customers in
recent time prefer to shop from those stores who provide them the huge discount. In order to
gain the customers attentions, retailing industries also follow the deep discounting strategy by
providing the discounts on almost every product (Prashar, Sai and Parsad, 2017).
In order to increase the awareness, the supermarkets are also using several promotional
activities. In order to decrease the competition from other firms, every industry is engaging in
promotion. Online marketing has also gained huge success. In the 21st century, Omni channel
as well as online channel is gaining the huge success. Strong and remarkable growth has also
been seen in the consumption of daily or necessary items (Beynon-Davies, 2018). From, the
past few years, significant changes have brought in the retailing system of Australia. almost
every big outlet has started giving emphasis on the online channel. Due to the shift in
customer expectations, organisations also moved to the online channels. In the recent time,
customers also prefer to shop from those supermarkets where they get discount. Due to this,
discount stores have started seeing more demand as compare to other retailing supermarkets.
In the past years, customers prefer to make purchase from different shops for different
product. The recent change has occurred in the retailing supermarket due to the preference of
customers to shop under one roof. Australian retailers also started giving emphasis on the
competition. Due to the increasing demand of the supermarket chains, several new players
are coming in the market with new and innovative approaches. In the 1970, almost every

Running Head: RETAILING SYSTEM 6
store was easily able to gain the loyalty on the side of customers. However, in recent time,
they are facing the changing customer demand. Wide variety of innovations is making their
dominance in the retail supermarkets (Eriksson, Norrman and Kembro, 2019).
Future face of retailing in Australia and alternative retail store
options
Due to the different advancements and innovation, several changes are also likely to bring in
the near future. Technology has taken its place in the mind of customers as well as
organisations. Customers do not want to stand in queue for long time due to the wastage of
time. This is the reason automated checkout will take place in the future of retailing. Due to
the several technological innovation, facial recognition technology will also come on the
way. It will be used in the near future to personalise as well as enhance the shopping
experience of customers. There are times when employees are not available at the store due to
any issue. In such a case, it is not feasible to satisfy the customers with the shopping
experience. In order to bring changes in this regard, robot assistant in store will help the
customers in great way. Due to such change, customers will not have to wait for long time for
the payments. It will make everything easy for the customers and customers will also take the
best shopping experience from the stores. Customers will also prefer robot technique due to
the ease in making their payment. Omni payment option will take place in the retailing
supermarkets of Australia in the near future. It means the entire store will take the payment
through different payment mode except only cash payment (Chopra, 2016). Several payment
channels will be included such as debit cards, cheques, credit cards as well as Apple Pay. It
will provide the ability to the organisations by accepting the payment in several ways.
Several alternative retail options will also be available in the near future. Customers will be
able to directly make the payment through the machine. Censor in the stores will
automatically count the number of items that customer have purchased. With the help of this,
organisation will also get the great help. Beacons will also develop due to which customers
will be able to get the updates as well as notifications for the specific experience. The need of
customers to shop anytime is not only putting the impact on retail adoption but also putting
pressure on the retailers to adopt some of the new formats of retail. In future, some of the
stores will purely serve as the drive through pick up location (Schiffling, Karamperidis and
Nelson, 2015). It will help in the development and enhancement of the opportunities for the

Running Head: RETAILING SYSTEM 7
retail stores. As stated previously, that online retailing will provide a chance to the retail
industry to emerge as a major exporter.
Conclusion and recommendations
From the overall discussion done, it is concluded that the several changes has been brought
in the retailing system of Australia. Several drivers have caused the changes in retail. In the
recent time, customers are demanding several new approaches to shop. Due to this, it
becomes essential for the retailers to adopt those strategies that will help it in satisfying the
demand. Due to the entry of various new entrants, competition has also taken its place. Due
to this, retailers have to ensure the significant and innovative changes (Terblanche, 2016).
In the coming few years also, retailing supermarket will depend on the various new forces.
Due to this, it is suggested to the organisations for taking account the changing needs of the
customers. Besides this, organisation should also take into consideration the changing
environmental rules and regulations. It is also not easy for the retailing supermarket to
convince the customers. Therefore, if the retailers will add innovative features, it will be easy
for them to convince the customers. Several strategies can also be adopted by considering the
several factors that can affect the organisation. It is the responsibility of the research and
development department to ensure the time-to-tome research on the external as well as
changing customer’s expectation.
From the above discussion, it is also come to know that customers prefer to shop under one
roof. Due to this, it is recommend to use the several retailing platforms that will assist the
customers in best possible manner. Digital marketing channel can be used in the coming time.
In addition to the online channels, physical stores also require the several channels.
Customers get attracted toward those stores who have done the best presentation. Therefore,
best presentation of stores with clear message has been suggested. Due to the busy schedule
of the customers, customers do not prefer to go to the store. In this way, it is suggested to the
retailers for using more online channel; this will also help them in their growth. From the
discussion carried on, it is also recommended that the retailers would go for best marketing
all over the world. Thus, to avail the future opportunity, it is suggested that retail stores
should initiate their brand marketing at the global level.

Running Head: RETAILING SYSTEM 8
References
Schiffling, S., Karamperidis, S. and Nelson, J.D., 2015. Local shops vs. online retailers:
competition or synergy?. Scottish Geographical Journal, 131(3-4), pp.220-227.
Sutton-Brady, C., Kamvounias, P. and Taylor, T., 2015. A model of supplier–retailer power
asymmetry in the Australian retail industry. Industrial marketing management, 51, pp.122-
130.
O’Mahony, B. and Lobo, A., 2017. The organic industry in Australia: Current and future
trends. Land Use Policy, 66, pp.331-339.
Prashar, S., Sai Vijay, T. and Parsad, C., 2017. Effects of online shopping values and website
cues on purchase behaviour: A study using S–O–R framework. Vikalpa, 42(1), pp.1-18
Terblanche, N.S., 2018. Revisiting the supermarket in-store customer shopping
experience. Journal of Retailing and Consumer Services, 40, pp.48-59.
Willems, K., Smolders, A., Brengman, M., Luyten, K. and Schöning, J., 2017. The path-to-
purchase is paved with digital opportunities: An inventory of shopper-oriented retail
technologies. Technological Forecasting and Social Change, 124, pp.228-242.
Beynon-Davies, P., 2018. Characterizing business models for digital business through
patterns. International Journal of Electronic Commerce, 22(1), pp.98-124.
Pinto, G.L., Dell’Era, C., Verganti, R. and Bellini, E., 2017. Innovation strategies in retail
services: solutions, experiences and meanings. European Journal of Innovation
Management, 20(2), pp.190-209.
Eriksson, E., Norrman, A. and Kembro, J., 2019. Contextual adaptation of omni-channel
grocery retailers’ online fulfilment centres. International Journal of Retail & Distribution
Management.
Etumnu, C.E., Foster, K.A., Widmar, N.O., Lusk, J.L. and Ortega, D.L., 2019. Drivers of
Online Grocery Shopping. United Kingdom: Routledge.
Chopra, S., 2016. How omni-channel can be the future of retailing. Decision, 43(2), pp.135-
144.

Running Head: RETAILING SYSTEM 9
Badenhorst-Weiss, J.A. and Weber, A.N., 2016. Time-based competition as a competitive
strategy for online grocery retailers. Journal of Contemporary Management, 13(1), pp.433-
460.