In 2017, many Australian retailers experienced increased headwinds in their business. The top line stalled and profits shrunk. With Amazon now open for business Down Under, Australian retailers are concerned to what degree this will make the already uncomfortable situation worse.
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I just got back from the US, having visited Shop.org in Los Angeles and let me tell you: don’t be fooled by deceptive distinctions between different forms of commerce. It’s all one experience in the eyes of the shopper. Let me explain.
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“What does not kill me makes me stronger.” – Friedrich Nietzsche, 1888. This quote may be more than 100-years old, but it holds a potent promise for Australian retailers who are prepared to embrace the new economy, take decisive action to defend their turf, and succeed in the ever-shifting commercial landscape.
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Consumer-centricity is quickly becoming the prevailing theme within the retail industry. In a recent letter to Amazon shareholders, CEO Jeff Bezos mentions the word “customer” 19 times. And, despite posting a net income of US$2.37 billion last year, the letter mentions the word profit a grand total of none.
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It’s no secret that many Australian retailers are under pressure. In recent years, more than 20 have cracked with a few subsequently disappearing. Poignantly, Australian retail sales fell again in February, the second decline within a three month period.
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The current rate of technological change is unprecedented in all known history. The power of this tidal wave is reshaping practically everything, retail included. Challenged on the new digital frontier, the industry is desperately trying to figure out what the future of retail will look like.
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