July 07, 2011
Source: www.news.com.au
Story By: Sarah Danckert and Robert Burton-Bradley
RETAILERS have been warned to adapt or perish as more and more shoppers window shop or try products in-store before buying online, a study has found.
Research by Macquarie Equities Research released today has revealed that 18 per cent of shopping centre visitors are only there to check prices and sizes before visiting online shopping sites to buy the item, The Australian reports.
Australian Retailers Association executive director Russell Zimmerman told news.com.au the study was further evidence that Australian retailers faced a major crisis and needed to urgently respond to online competition.
"We are seeing a shift from customers researching online before going into the store, to the opposite which is going to the store and going away to buy online," he said.
"There are many reasons for this, including convenience, product range and a growing trust in online payment facilities."
Mr Zimmerman said that while many smaller stores were embracing online opportunities such as social media and websites that allowed purchasing, he warned those that did not adapt would struggle to survive.
"Traditional bricks and mortar businesses that do not already have an online presence will be impacted by the surge in online shopping," he said.
"The important thing is for retailers to review their online presence and extend their market share while making it convenient and enjoyable for people to purchase their products."
The Macquarie survey, which sought to pinpoint the online shopping habits of 3000 white-collar workers, found that price over offerings was the key driver for the trend towards internet purchases, with 56 per cent of respondents citing this as their main motivation.
Of those surveyed by the broker, 73 per cent said the strength of the Australian dollar had affected their shopping behaviour over the past 12 months.
Additionally, the survey showed that over the first quarter of this year, 20 per cent of respondents did more than 50 per cent of their shopping online.
And the strong Australian dollar is continuing to shape shopping habits, with research showing a shift towards online retailing as consumers seek the best deals.
The research found that more than a third of those surveyed would reduce the sum spent online if the dollar fell by 20 per cent.
Macquarie predicts the dollar to depreciate against the greenback, euro and sterling over the next two to four years.
Additionally, more than 70 per cent of respondents said the dollar's strength had influenced their shopping behaviour over the past 12 months.
To read the full story, follow this link: www.news.com.au/money/money-matters/shoppers-browse-in-malls-then-buy-online/story-e6frfmd9-1226089551141
