Since the advent of the Internet, traditional brick-and-mortar stores, also known as brick-and-mortar retailers, have been besieged by online retailers. As stated by Magner (2013), an increase in online sales will be observed in the next five years, nationally and/or internationally, as it will provide consumers with a wider variety of products at competitive prices, without store opening hours and without GST payable on purchases made overseas under AUD$1000. Additionally, the retail life cycle for most retailers has reached the maturity and decline stage. Magner (2013) states that a “slowdown [in] technological system changes, total market acceptance and product market saturation” were strong indicators that in-store retailing had reached the maturity stage. Additionally, changes in consumer lifestyle, product range preferences, low-cost private label products, and slow technological advances are factors preventing the industry from entering the growth phase of the retail life cycle. detail (Magner 2013). Examples of companies that have been affected by digital retailers are Myer and David Jones as they face disadvantage factors such as high operating costs (e.g. labor and rental costs), low product range compared to online retailers (Denness 2014). The example is further illustrated by Figure 1 (above) as it provides statistics on department store revenue declines to digital retailers (NAB Group Economics 2014). Additionally, larger retailers' aversion to investing in the online retail channel has led to a growing number of competitors targeting lucrative Australian consumers. One example is UK-based fashion retailer ASOS, which launched a website dedicated to Australian customers, ...... middle of paper ......Retail, viewed 2 April 2014, . Levy, M & Weitz, B 2012, 'Retail Communication Mix', in Retailing Management, 8th edition, McGraw-Hill Higher Education.Magner, L 2013, , viewed 2 April 2014, .Murphy, T 2014, keynote, viewed 13 April 2014, .NAB Group Economics 2014, NAB Business, accessed 3 April 2014, .Rigby, D 2011, 'The Future of Shopping', Harvard Business Review, December 2011, pp. 65-76.Wyk, SV 2013, Traditional retail on life support, but omnichannel can help Breathing new life.
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