Several well-known Australian retailers, including Bunnings, David Jones, Target and Kmart recently announced restructures. Unfortunately, these restructures resulted in significant redundancies.
In the current landscape, many Australian retailers, particularly those selling discretionary consumer products, are either experiencing or expect to experience challenging conditions. While the impact of rising interest rates is often mentioned, we should also acknowledge Amazon’s increasing market share.
The eCommerce giant reported a near-doubling of Australian sales in 2022 to $2.63 billion and is on track to reach $10 billion by 2025. At this level, Amazon will be taking significant sales from incumbent Australian retailers and mostly in sectors that are already facing challenging headwinds.
Adapting to the Evolving Retail Landscape: Success Stories
However, amid this turbulent landscape, there are glimmers of hope and resilience. The following retailers are not just weathering the storm, but are actively embracing innovative strategies and digital marketing tools to stay competitive and meet the evolving demands of the market:
- Myer: This popular local retailer witnessed a dramatic increase in its online sales to around 20 per cent of total turnover. This has more than offset any challenges faced in its store trading.
- Big W: Big W is another retailer that is on the right track thanks to investing significantly in its personalised marketing capability. Members of the Everyday Rewards program now regularly receive targeted, personalised points “Booster” offers. This is a great example of how retailers are now tapping into supplier advertising and marketing funds that were previously directed to digital-first players like Amazon, Facebook and Google.
- David Jones: This Australian retailer is leading the way with the exciting launch of its Amplify retail media business, which targets Australia’s premium shoppers.
- Asda: UK grocery and general merchandise retailer Asda might be across the pond, but it offers a shining example of a retailer that’s adopting the same digital marketing tools that Amazon and the eCommerce pure-plays take for granted. Asda is giving shoppers completely personalised “missions” to trial new categories and products. Then, it rewards them with a “cash pot” bonus to spend within its stores.
Redefining the Future of Australian Retail
These success stories serve as a testament to the adaptability and determination of retailers in the pursuit of continued growth and success. As the industry evolves, it remains to be seen how other players will follow suit, redefining the future of retail Down Under.