Traditional and Online Retail Converging As Online Growth Slows

A slowdown in e-commerce spending growth is contributing to a convergence of both traditional and online retail markets in Australia.

Online retailers are putting products in bricks and mortar stores, physical retailers are selling online, brands are partnering to sell products and are expanding their offerings.

Executive Chairman of the National Online Retailers Association (NORA) Paula Greenberg, spoke at

JLL's annual Industrial event earlier this month about retailers' response to this growth slowdown and the ongoing pursuit of new customers.

These include both on and offline retailers having both a physical presence in-store and with online sales; creating specialised showrooms or pop-up stores to draw crowds with unique experiences and expanding their product offerings.

The trends are seeing retailers increasingly partner with others to sell products and achieve footfall, attract new customers, continue to excite existing customers and to expand their presence.

According to Mr Greenberg, “The pace of change is amazing – customers are increasingly in control, but it’s a win-win situation. The changes are positive for both retailers and customers in Australia, as there are diverse opportunities to sell products; people are first and foremost buying from Australian retail sites; and customers will have more products to choose from. Retail thrives in a diverse environment.

“We are also finding that Australian wholesalers are increasingly going directly to the customer – in some instances cutting out the middleman retailer by approaching the public directly, either through online sales via their own and other aggregator sites, or through physical stores. Many businesses are doing a combination of everything to expand their market share and appeal to new customers.

“Businesses like Nespresso, Apple, Samsung, Swarovski, and Croc are all brand owners who both retail and wholesale in Australia. They have elegant stores and direct relationships with customers, and can also be bought in other larger retail outlets and online. This partnering and expanding is a fast-accelerating trend in Australia,” said Mr Greenberg.