Oz Online Shopping On Track To Hit 20% Of Total Sales
The Australian Retailers Association (ARA) Chief Executive, Paul Zahra, expects online sales to hit around 20% of total retail sales in the next eighteen months to two years, following a shift to e-commerce prompt by COVID19.
Reported by The Australian, Zahra claims a heightened preference towards online shopping and purchasing local will reshape the local retail industry – prompting the closure of more physical stores too.
Despite this, Mr Zahra states a trend towards e-commerce will reap many benefits for the local industry, with the coronavirus pandemic further increasing the pace of uptake.
He forecasts local online shopping could more than double its percentage of total retail sales by 2022 – from around 10% pre-COVID to 20%.
Zahra states consumer behaviour shifts fared during the pandemic have expanded to older demographics, developing increased comfort for online shopping during lockdown conditions.
The news comes as most local retailers – from JB Hi-Fi to Wesfarmers, Woolworths and Myer – accelerate their investment in digital intelligence.
JB Hi-Fi reported an 18.3% year-on-year jump in online sales for HY20 to $170.8 million, with the retailer committed to evolving its online offer even further.
Wesfarmers has continued to progress its expansion of Catch.com, appointing former Amazon US Vice President, Pete Sauerborn, its divisional Managing Director.
Myer reported a 61% jump in online sales for the fiscal year, despite notching its second largest loss in company history of $172 million.