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OF BOTH WORLDS Over the past two years, the Australian retail sector faced ongoing challenges, forcing retailers to swiftly pivot and shift their focus to innovation in order to survive.
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etailers that elevated operations to navigate the enforcement of lockdowns, state border closures and trading restrictions, have emerged more resilient and capable in the face of changing consumer behaviours, according to The Adyen Australia 2022 Retail Report. However, despite the growth of ecommerce over the last two years, 73 per cent of Australian shoppers prefer to shop in-store. Since the pandemic and ongoing lockdowns, 34 per cent of consumers say they have a new appreciation for being able to touch, feel or physically try products in-store before they buy. Although consumers continue to embrace ecommerce and online shopping, over two thirds of consumers (67 per cent) say physical stores are an important touchpoint, even if they shop with the same retailer online. Indeed, 48 per cent say they like to go in-store for customer service or to get help with a product they couldn’t get online and 51 per cent are more loyal to retailers 34 giftguideonline.com.au
who have physical stores and online options. For Australian consumers it’s all about the experience, says Hayley Fisher, country manager for Australia and New Zealand at Adyen. “Just in the last five years alone we’ve seen consumer preference on shopping channels and payment methods shift from one to another, but there are two things that remain constant—it’s the reign of seamless experiences with cashless being king. “Retailers who understand and adapt to this, regardless of platform or payment method, will be well-positioned to take on the next wave of retail innovation.” Forty-five per cent of businesses expect the proportion of revenue to increase from physical stores in the next year and 39 per cent plan to open more physical stores in the same period. For retailers, this is about more than just stocking up shelves, throwing open the doors and expecting the crowds to coalesce. Today, it’s about creating a
destination that entices: 54 per cent of consumers say physical stores should be exciting places to visit. Experience matters for Australians, with shoppers preferring to shop with retailers that provide a seamless shopping experience across all touchpoints. “The role of the store, particularly in Australia, is to get that customer engagement, be able to range all of your products in one space and have the customer engage with the brand as much as with the product,” adds Rhian Greenway, chief information officer, City Beach. As shoppers continue to favour the in-store experience,
retailers need to emulate physical store experiences as much as possible online to show that they understand their customer preferences. “While Aussies were quick to adopt ecommerce during the pandemic, it didn’t diminish their love for in-store shopping. If anything, Aussies now expect retailers to provide the best of both worlds,” adds Fisher. “To continue to remain agile and competitive, retailers should be driving towards meeting these consumer expectations, delivering exceptional customer experiences both in-store and online through unified commerce.”