Retailers shrug off international arrivals

ARO71 per cent of Australian retailers are not concerned about the influx of international retailers to Australian shores, according to results from the 2016 Inside Retail reader survey.

The 2016 Australian Retail Outlook, launched in February, includes the results of the 2016 Inside Retail reader survey, illustrated with insightful infographics and featuring analysis and commentary.

One of the more heavily discussed topics in the Australian retail industry in 2015 was the increasing arrival of international retail giants to our shores. And they weren’t merely sneaking their way into the local market unannounced either – Swedish fast fashion retailer, H&M, opened one of its biggest stores in the world in Sydney in 2015, and the newly arrived South African discount retailer, MRP, is eyeing off a big local push in 2016 after opening its first stores in Melbourne in late 2015. And those already established locally, such as German discount grocer, Aldi, and US warehouse giant, Costco, have aggressive store expansions in the works for 2016.

Nonetheless, when asked if the influx of international retailers to Australian shores worries them, a massive 71 per cent of retailers told Inside Retail that they are not concerned about the influx of international retailers to Australian shores. This was an unexpected result, and one that points to the stoic, can-do nature of Australian retailers.

Screen Shot 2016-03-23 at 4.51.42 PM


Top reader comments
Here are pick of the bunch of the comments in response to this question from some of the retailers who completed the 2016 Inside Retail reader survey.

  • Increased competition helps retailers to upgrade and improve, while also increasing customer experience instore.
  • It’s not the brands – it’s the cost of their products. International retailers continue to drive prices down. The world has to stop looking at Australia like it’s the holy grail of retail.
  • I love the idea of options for our customers. It will change the landscape of retail, but also offer SMEs the opportunity to truly niche down and identify a unique market, ideally sourcing from smaller local manufacturers and suppliers, increasing their margins and perhaps also increasing the Australian wholesale/manufacturing sector in the process. Rather than try to compete, be unique and offer something ‘they’ can’t access.
  • Not really. They’ll face the same constraints and opportunities that domestic retailers are facing. In the end, the pond just gets a little bigger.
  • The presence of the internationals does not worry me, but the strategies the Australian retailers are using to compete are creating problems for us. Drastically slashing prices, using replica design and year round sales are altering the consumer buying patterns pretty drastically.

Published annually, the Australian Retail Outlook examines the future of the retail industry across all facets. The 72-page 2016 Australian Retail Outlook can be purchased in digital or print form here.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week. Premium subscribers also receive the Australian Retail Outlook as part of their annual subscription.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.