Retail challenges in Australia
We just attended a briefing by the Chief Economist from NAB. His data confirmed our long-held view that online sales are sucking profits out from many retail verticals. Consequently, retailers who can engage digitally to bring customers to their brick and mortar outlets should give preference to this model, rather than try to increase online sales. The Digital Path to Purchase needs to become the new paradigm for specialty retailers, replacing the current siloed arrangements, which encourage online and store teams to compete, to the detriment of the enterprise as a whole. NAB’s CE also pointed out that recent, massive increases in utility prices (energy, rates etc. going up by 20%) have dampened discretionary spending, seriously impacting specialty retailers.