August 24, 2016
Aussie E-Commerce Pure Plays Stocking Up on Bricks and Mortar
July 21, 2016
While omnichannel initiatives generally start with brick-and-mortar retailers expanding into e-commerce and mobile, Internet pure plays in Australia are taking the opposite route in growing numbers, according to a new report from Commonwealth Bank. In the Commonwealth Bank Retail Insights Report , the company found 18 percent of online-only retailers in Australia are planning to open physical locations in the next year, up from 13 percent six months ago.
“Bricks-and-mortar and multi-channel retailers are doing more online as customer preferences evolve,” said Jerry Macey, national manager of retail for Commonwealth Bank. “At the same time, emboldened digital retailers are opening physical stores to complement and drive further online sales. We have seen large online retailers such as Amazon unveil physical stores in the U.S., and this trend is expected to strengthen over the year ahead with almost one in five pure play online retailers planning a bricks-and-mortar outlet by early 2017.”
Retailers also expect online sales to increase over the next 12 months, predicting 24 percent growth, on average, up from 20 percent six months ago. And, mobile will make up a growing share of those sales, retailers said, accounting for 36 percent of online revenue in the next 12 months.