Market Trends of Australia Retail Sector
This section covers the major market trends shaping the Australia Retail Sector Market according to our research experts:
Demand for Food and Beverages Continues to be Strong Despite the COVID-19 Challenges
The demand for several products continues to rise in 2020, continuing the upward demand trend they have been recording in the study period. For instance, food and beverages recorded a growth of more than 11% in 2020 and valued at around AUD 151 billion. Other key important segments of the retail market, including household care products, including floor cleaners, laundry care products, etc., have also recorded a spike in demand in 2020. The apparel, footwear, and accessories segment, which was one of the strong segments for more sale transactions during the study period, recorded a fall in demand during the year.
Expanding Online Distribution Channel is Helping the Market to Record More Revenues
Online retailing is one of the faster-growing channels of distribution in the country, owing to the high urbanization rate and the growing e-commerce shoppers in Australia. The online distribution channel recorded significant growth during the study period, and the sudden COVID-19 pandemic has fuelled its growth during the year 2020. Lockdown measures and safe distancing protocols are the major factors that brought new customers to the channel, whereas the factors such as strong payment gateways, new omnichannel practices including click-and-collect, faster delivery options including same-day, one-day deliveries for the majority of product categories including electronics, and a few health and beauty products have helped the segment to more transactions in the year 2020. The trend is anticipated to continue in the forecast period, as well as the retailers have already started focusing on strengthening their distribution and digital payment facilities.
