How Australians navigate retail spending amidst cost-of-living pressures

Omnichannel retail is projected to continue due to demand for hybrid shopping.

Around 62.5% of Australians are comparing in-store and online to look for the best value for money to address the challenges posed by cost-of-living pressures, according to a report by Amazon Australia.

Amazon said the report led by GlobalData found that almost 85% of consumers are concerned about inflation. This result in Australian consumers scouring online and offline to ensure value and convenience, said Jane Menzies, country manager, of Amazon Australia.

“For example, half of all Australians are browsing products online before going in-store to purchase them, while a similar percentage are looking at online reviews and comparison sites before buying in-store,” she said.

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“This trend represents an opportunity for retailers of all sizes to innovate and meet customer needs through omnichannel experiences in everything from personalisation to click and collect,” she added.

Neil Saunders, Managing Director of report authors, GlobalData, said omnichannel retail spending rose by 47.8% in 2019, adding that this trend is expected to continue as brands respond to the demand for hybrid shopping.

Saunders added that omnichannel could drive opportunities for both customers and retailers “from a price, product, and customer experience perspective.”

“Price and product are key, but experience is king as shoppers are increasingly looking for options when buying the goods they want and need. Retailers have expanded their online presence to allow shoppers to browse anytime and anywhere, while maintaining a physical presence that allows buyers to choose how and when they get their purchases,” he said.