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Retail

Retail Industry

In Australia, retail business accounts for almost 4% of the GDP and 10% of national employment. There are almost 140 000 retail businesses in Australia with great diversity regarding size, region, and retail format, competition within sectors and in the nature of goods sold. Supermarkets and grocery stores primarily sell a range of groceries, fruits and vegetables, breads, toiletries, dairy goods and delicatessen. Similarly, convenience store or corner stores are involved in selling cigarettes, beverages, snack foods, ready to eat foods, magazines, newspapers and general merchandise. Department stores, on a large scale, do business through fabrics, soft goods, glassware, housewares, electronics, perfumes, cosmetics, toiletries, furniture and household appliances. However, this business is facing some competition after the emergence of online shops, which also sell almost everything at a cheaper price and have access 24/7. Another type of retailer would be the one who is involved in fabric, curtains and household textiles and also one who is dealing with various apparels and accessories in a small measure.

Sales growth anticipation in this industry can be assured on the next half-decade. Gradual improvements of economy have supplemented revenue growth in this sector. The commission estimates that online retailing represents 6 percent of total Australian retail sales made up of 4 per cent domestic online ($8.4 billion) and 2 per cent from overseas ($4.2 billion). High volume of trading with China and other Asian countries will result in prosperity of Australian economy.

Keys to success:

  • Find ATO benchmarks at (https://www.ato.gov.au/Business/Small-business-benchmarks/In-detail/About/Small-business-benchmarks/) offers a broad database of small business benchmarks, which are a guide to help business compare their performance against similar businesses in the industry;
  • Key element of any customer facing business is providing excellent customer service experience. Retail business can grow only when customer attaining and retaining are ensured;
  • Retail businesses should provide exceptional post-sales services. In other words, they should emphasis on loyalty/reward programs to facilitate an individual need;
  • Retail stores or outlet networks should be managed smartly in order to meet the need and expectations of savvy Aussie consumers;
  • Both forward and backward integration should be applied to control distribution channels as well as to minimise cost of production or purchase.