HK2042 Retail Management: The Evolution of Retailing in Australia

This report provides an overview of the Australian retailing system, highlighting its evolution and adoption of technological advancements and strategies to expand customer base and market share. It discusses the retailing lifecycle, the wheel of retailing, and key drivers such as customer expectations, market flexibility, and transparency that have shaped changes in Australia's retailing system. The report also examines future trends and alternative retail store options, emphasizing the importance of understanding and adapting to technological and digital changes. Diversification and mergers as strategies for increasing market share are also discussed, using Wesfarmers as an example. The report concludes by emphasizing the need for companies to build competitive advantages while managing risks in a rapidly evolving retail landscape.

Marketing
Retail management
Student’s name
8/27/2019

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Executive summary
This report mainly highlights about the Australian retailing system, which over time has evolved
in main newer concepts. This is all because, the company has adopted the various technological
aspects and the various strategies to tap the larger customer base and market share and through
that, they are earning more profits out of it. Other than this, this report also highlights about the
retailing lifecycle, and the wheel of retiling. Other than this, key drivers such as customers,
flexibility in market, transparency, which helps in generating changes in Australia’s retailing
system. Lastly, future trends also help the companies to generate more profit than normal.

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Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................3
About retailing system in Australia.............................................................................................3
Section 1..........................................................................................................................................4
The major changes and development in Australia retailing system............................................4
Section 2..........................................................................................................................................5
Key drivers of the retail format changed in Australia.................................................................5
Section 3..........................................................................................................................................7
Future face of the retailing in Australia and alternative retail stores options..............................7
Conclusion.......................................................................................................................................8
Recommendations............................................................................................................................9
References......................................................................................................................................10

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Introduction
In general terms, when we talk about the discounted variety stores, which mainly highlights
about the products such as food products, toys, household goods, hardware, furniture and other
novelty products. These products are generally inexpensive and are offered at the discounted
prices. However, if we talk about the key difference in between the discount stores and
department stores, discount stores offer products for the discounted prices as compared to the
high-end designers or the department stores. Whereas, department stores are the retail stores,
which offer varieties of, goods and services and they are sort to be the one stop shop for many
people (Zielke, 2014).
Moreover, department stores are also specialized in selling particular item such as clothing and
jewellery or sometimes also offer the combination of the products together. Department stores
are commonly the part of the retail chain which are situated all and around the countries.
Whereas in terms of discounted stores they have the higher volume with lower profit margins,
which allow them to offer the products at the lower rates as compared to the department stores
(Davies, 2012).
About retailing system in Australia
Retailing in Australia carries the proud and the colorful retail heritage. Right from the corner
stores to the elegant cities departmental stores and the mega mall, shops were introduced in very
less time. As all these have been in the heart of the European settlements across the continents.
As behind the counters, Australian retailing system has developed so much such as new goods
and new customs are in practice, there are developments of specialist shops. Along with this,
changes in locality and technology have also geared up.
Hence, in general terms the Australian retail market their have been the significant forces which
helps the country in reshaping the Australian cities and its retailing system. Earlier at the time of
post war there was a growth of the automobile ownership, there was an increase in the
purchasing power of the customers. Moreover, the change in the demographics and market size
generates more opportunities of the enhancement of the retail industry. Hence, over a period it

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was seen that from that old town a new town was born in terms of retailing aspect (Stimson,
2011).
Section 1
The major changes and development in Australia retailing system
It is analyzed that the retail system of Australia is facing disruption due to the increased entrance
of the foreign firms and the changing expectations of the customers has shifted the retailer
landscape. The consumers have become more of techno savvy and affluent, which in turn has
changed the expectations, and the behavior of the customers. As the rise of the Instagram stories,
Facebook live, and messenger applications are making fundamental changes to interact with their
customers online. As people are updating their products over the social media game and uses,
social media networks to tell stories (Tripathi, & Dave, 2013).
Other than this, it is also seen that retailers that enables the shoppers to build and customized
products are prosper day by day. Modern people are placing more value on experience over the
physical items. Other than this, it is also seen that the smart Australian retailing businesses are
taking opportunities to leap- frog into the leading positions by leveraging the hard fought for the
business and technology intelligent in many international markets (Grugulis, & Bozkurt, 2011).
Moreover, all the above information will be clearer through the learning concept of wheel of
retailing as the companies in order to gain knowledge and survive in the market for the longer
period adopt these. Likewise, wheel of retailing mainly highlights about the four step in which
first step highlights about the establishing and penetrating in market, in which retail
companies enter the market with lower price, lower profit margins and with low status. This is
due to the innovative cost cutting procedure, which further helps in attracting competitors.
Second step highlights about expansion of market, in which company enlarge their customer
base through increasing sales, gaining higher profit margins or the market share. Thirdly,
stabilized the business model by attracting margins, as through this companies keeps on
expanding and increasing its reach to attract and retain its customers. This concept mainly open-
up with niche concept. Lastly, an entry of other retailer competitor, which brings down the

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original one. In this competitor generates the higher quality of products with the additional
services tends to generates more profit than normal other company does.
Another concept highlights about the retail lifecycle, which mainly comprises of four stages such
as innovation, development, maturity and decline stage. It mainly highlights about S shape
development through the economic life which has four main phases-
Innovation- In this, newer organization is born, which mainly focuses on improving
convenience to their customers who are different from the other retailers. At this stage of
innovation companies do have competitors but few. With this, newer concept, the rate of growth
keeps on increasing and management fine tunes its strategies through experimentation. In this the
level of profitability is quite normal.
Second stage highlights about accelerated growth, in which retailers faces increase in sales. In
this two aspects are affected, the development has taken place along with the this few
competitors are also emerged. As growth in this aspect, is imperative, the investment level is also
higher than usual which generates more profitability in the market (Quinn, et al, 2013).
Third stage highlights about the Maturity, in which newer tends and forms of retiling is arising.
Growth rate, which was earlier, tends to decrease. In this, market is becoming competitive and
growth and profit of the company slow down. IN order to improve they need to re- think about
the strategy and reposition itself in the market.
Lastly, decline stage in which that retail company loses its competitive edge. Hence, at this
stage, the organization will decide to continue or drop the market. Hence, the rate of the growth
at this stage is negative, profits decline and overheads are at higher rates (Bodie, 2015).
Section 2
Key drivers of the retail format changed in Australia
The Australian retail landscape is undergoing a structural shift with the advancement of
technologies, which is disrupting the retail ecosystem, Moreover it is also transforming the ways
the consumers interacts through online, offline and on the go channels. The innovation in the

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technologies has created complexities for the retailers to manage the business in the new
environment and actively respond to the changing needs of the customers.
It is analyzed that the commoditization of the internet has increased the power of suppliers,
manufactures and wholesalers for directly selling the goods to the consumers. The Australian
consumers have become more agile and intelligent however, they demand for premium retail
experience, which provides ease and best customer experience. The retailers need to focus more
on mobile technology that allows the customers to engage more and bridge the gap between
retailers and consumers. The introduction of Bluetooth low energy technology, PayPal Beacon
and GPS allows developing close connection with the customers. Such exciting innovation
increases the sales of the company and helps in increasing the profitability of the business
(Pantano, et al, 2013).
The retailers are using internet of things to gather the data regarding the customer’s needs,
buying behavior and the preferences. It allows the retailers to use internet and connect with the
customers. It aids in planned inventory and reducing the challenge of overstocking. The
collection of data helps in providing seamless experience to the customers and prides value to the
customers. The flexibility allows the companies to make predictions related to personalization
and customization. It has driven the need to be more flexible to open small showrooms and open
shopping center that allows providing flexibility to the local community of Australia (Yumurtacı
et al, 2017).
The idea of transparency has also has major impact on retail system of Australia as the
consumers have unprecedented access to information about stores, brands and products through
online channels, mobile devices and customer to customer sharing. For the overcoming of such
challenges the retailers has to be transparent to the product and the service offerings due to this,
misrepresentation can be easily identified (Wrigley, & Lowe, 2014).
In last ten years, it was also seen that diversification and mergers are the best option, which are
opted by many companies in order to increase the market share. One of the best examples in the
case of diversification is Wesfarmers in which the company combines the earning from the
Kmart and Coal production into a single portfolio, which offers diversification. Diversification of
wesfarmers mainly comprises of Coles, home improvement, departmental stores, industrial and

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office works products. Hence, it states that there is a wide portfolio, which makes the workings
even more complex to assess as a potential investor, but overall when we identify the parts,
which contributes to the earnings and the company’s portfolio, and hold on more risk is one of
the excellent way to start the business (Lewis, Whysall, & Foster,2014).
Section 3
Future face of the retailing in Australia and alternative retail stores options
Yes! It is quite natural that in an year there is a lot of difference and the changes took place in the
retail sector of the Australia. This is all because of the world that is undergoing a digital
transformation. With the technology, developing aspect, customer’s needs, wants and
expectations are also constantly evolving. Moreover, business survivals are also become
independent on understanding and opting this technological or digital changing landscape
( Wang, & Ha, 2011).
Other than this many other predications about the future were also made such as dominance of
certain technologies in which the company link back to the notion of providing the convenience
to shopper and also learn more about the customers. Other than this, increased the use of data
and analytics are becoming more intelligent interactions with the customers. Moreover, the rising
demand for the personalization and customization for the products or the services are also
increasing day by day. Lastly, transformation of the physical spaces and there is much more
usage of the online portals. For example, Online shopping is growing steadily like Costco is
expanding on large scale which has in-turned the retail into a global competition. Moreover,
nowadays companies are also providing more flexible services, which help them to satisfy the
needs of the customers experience as well as convenience. However, all these aspects help the
companies to build more competitive advantage strategy in the market and increasing the risk at
the same time. Alternatively, greater transparency in company is also generating the brand to
cope up with the fragmentation of the company (Davis, & Dyer, 2012).
Other than this, the future of Australian retailing sector are also depended on the disruptive
forces such as changing the customers purchasing power, customers spending patterns and influx

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of foreign companies which focus on formulating the newer strategies in retailing sector. Now,
the most basic aspect, which will affect the retailing sector, is the growth of the Ecommerce in
international market such as the use of social media aspects or the technologies an efficient
logistics improves the working path of the retail companies as well as broaden their channels into
global market.
Australia in their near future is increasingly focus on the near shore warehousing solutions to
improve the overall performance as well as experience of their customers which generates the
greater efficiencies and speedy delivery into the market or to the ultimate customers. As such
strategies which will be adopted by the Australian market generates better understanding id the
customers and along with this it also ensures that market product or the services are reverberate
all over the world. Lastly, the adoption of the Omni- channel strategy in which customers are
increasingly engaging with the retailers through the online channels, mobile application or the
websites along with this, in logistics terms, same day shipping is quite becoming prominent in
the retailing sector in near future (Evans, 2011).
Lastly, An interplay in between the emerging technology, changing customers’ expectations and
the newer business models helps in embracing the customers led innovations, digital and more of
agile processes. Shifting from physical stores, interactive store displays to digital customers,
social media engagement are become more prominent in the near future.
Conclusion
From the above report, we can conclude that retailing system of Australia has changed a lot due
to the expansion of the technology aspect and further due to the customers who are becoming
day-by-day techno savvy getting attracted towards the technology aspect. Not only this,
customers are becoming the vital for every retail industry, moreover, adoption of the Omni
channeling in which both the physical stores as well as online aspects are also being applied in
order to target the large customer base. Hence, the role of technology, role of social media has
gain the large market share and due to this the mainly retailers have a opportunities to expand
more than usual.

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Recommendations
 In future, the retail industry should do focus over the customers preferences as if the
customers are treated well, then factor will turns them into loyal customers. Look for
better consistency when hiring the sales staff.
 Get more personal with the customers in which connecting with the customers in a
personal relevant way continuous to be the best way to get them know like they started
trusting you.
 Keep on modernizing the merchandising so that customers gets attracted to it and hence,
tends to buy those because it do carries some uniqueness within it.
 Work over the technology aspects, convenience facilities for the customers so that it
helps in improving the profits of the retail stores at the larger scale.

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References
Bodie, Z. (2015) Thoughts on the future: Life-cycle investing in theory and practice. Financial
Analysts Journal, 71(1), 43-48.
Davies, R. (2012) Retail and Commercial Planning (RLE Retailing and Distribution). Routledge.
Davis, L. Y., & Dyer, B. (2012) Consumers' value perceptions across retail outlets: shopping at
mass merchandisers and department stores. The International Review of Retail, Distribution and
Consumer Research, 22(2), 115-142.
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), pp.1-31.
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.
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.
Quinn, B., McKitterick, L., McAdam, R. and Brennan, M., (2013) Innovation in small-scale
retailing: a future research agenda. The International Journal of Entrepreneurship and
Innovation, 14(2), pp.81-93.
Stimson, R. J. (2011) Australia's changing economic geography revisited. Australasian Journal
of Regional Studies, The, 17(1), 22.
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.

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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.
Yumurtacı Hüseyinoğlu, I. Ö., Galipoğlu, E., & Kotzab, H. (2017) Social, local and mobile
commerce practices in omni-channel retailing: insights from Germany and Turkey. International
Journal of Retail & Distribution Management, 45(7/8), 711-729.
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.