Debt Consolidation Australia

... where your financial freedom begins!

Knowledgebase

Bridge Loan:
A short-term loan used until a person or company secures permanent financing or removes an existing obligation.

Debt Consolidation Australia :: News

Share this news item!

Australian Retailers Face Reckoning Amid Growing Online Competition

Brick-and-mortar retailers in Australia are under mounting pressure as market dynamics shift dramatically.

According to the latest data from the Australian Securities and Investments Commission (ASIC), a staggering 768 retailers declared insolvency in the 2023-24 financial year. This marks a significant increase from 540 in 2022-23 and 319 in 2021-22.

The economic environment is also adding to the woes. Consumer sentiment continues to hover at recessionary levels, exacerbating the struggles for traditional retailers.

The Australian Bureau of Statistics (ABS) recently disclosed a worrying trend in retail sales. Quarterly retail sales have contracted by 0.3%, and are down 0.6% compared to last year. Remarkably, this marks the fifth consecutive quarter with a negative annual growth rate outside of pandemic disruptions, a rarity since the 1980s.

On a per capita basis, retail volumes saw a drop of 0.9%, the eighth consecutive quarterly decline, representing a 3.0% year-on-year decrease. This spells further trouble for conventional retail outlets grappling with diminishing foot traffic.

Competition from online retailers like Amazon and eBay is intensifying the challenges for brick-and-mortar stores. Offering unparalleled convenience and competitive pricing, these e-commerce giants are capturing an increasingly larger slice of the market.

Amazon’s strengthened foothold in Australia since its arrival in December 2017 poses a substantial threat. With the promise of low prices and the allure of complimentary 48-hour deliveries for Amazon Prime members, Amazon has continued to expand its reach. Earlier this year, the company announced plans to further grow its operations and distribution network in Australia.

A recent Roy Morgan study, reported by The New Daily, reveals a compelling trend: Amazon expanded its customer base by 16% in the year ending June 2024, attracting 1.1 million additional users compared to the previous year.

Brian Walker, CEO of Retail Doctor Group, posits that Amazon is on track to become one of Australia's largest variety retailers, alongside the likes of Kmart and Big W. "Amazon could become Australia’s largest general merchandise retailer within the next five years," Walker noted.

Walker underscores the necessity for existing retailers to revamp their competitive strategies. "You're under significant threat if you don’t offer advantages in speed, range, price, or convenience," he added.

Signs of this competitive stress are already visible, with retailers like Booktopia closing their doors in the face of relentless pressure.

Amazon’s Prime program benefits customers with rapid, free delivery for a modest annual subscription fee, encouraging ongoing use of Amazon’s services. Prime members also gain access to Amazon’s entertainment offerings, forming a package that rivals Netflix.

From Amazon's perspective, the Prime subscription provides a steady revenue flow and ensures loyal customer engagement, making further investments in fulfillment centers more economically viable.

While Amazon and Walmart dominate the American retail scene, the forecast suggests Amazon is on a path to significant dominance in Australia as well. The financial landscape is challenging for traditional retailers that must now focus on value and convenience to retain customer loyalty.

Published:Sunday, 4th Aug 2024
Source: Paige Estritori

Share this news item:

No news available under the category: finance.

Debt Consolidation Articles

Financial Planning 101: How to Get Ahead of Your Debt

Welcome to Financial Planning 101: How to Get Ahead of Your Debt! If you're feeling overwhelmed by your financial situation, you're not alone. Many people struggle with managing debt and finding ways to achieve financial stability. - read more

The Beginner's Blueprint to Creating an Effective Family Budget

In a world marked by economic uncertainties and the ever-mounting cost of living, the importance of a sound family budget cannot be overstated. Today's economic climate necessitates not just prudent but strategic financial planning. With the right budget in place, families can navigate the choppy waters of their finances, avoiding the all-too-common pitfalls of overspending and under-saving. - read more

The Importance of Emergency Funds in Your Monthly Budget

When it comes to managing your finances, planning for the unexpected is a crucial part of staying on top of your budget. An emergency fund serves as your financial safety net, poised to offer support when unforeseen expenses arise. These funds are specifically set aside to cover unexpected costs, like medical emergencies, car repairs, or urgent home maintenance issues. - read more

Common Mistakes to Avoid When Consolidating Debts

Welcome to our guide on avoiding common mistakes when consolidating debts. We're glad you're here, as taking the time to educate yourself is a crucial step towards financial well-being. - read more

The Ultimate Guide to Managing Personal Debt: Tips and Tricks

Managing personal debt effectively is crucial for maintaining financial stability. Debt, when left unchecked, can quickly spiral out of control, leading to financial stress and a host of other problems. - read more

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008, authorised credit representative of Saccasan Pty Ltd, Australian Credit License 386297. Visit the ASIC website for additional licensing information.

IMPORTANT: We are neither authorised nor licensed to provide finance or finance products. We do not recommend any specific financial products and we do not offer any form of credit or other financial advice. All product enquiries and requests for financial and/or other advice on this website are referred to third party, qualified intermediaries with whom you can deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third part to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs.