Australian consumers still shop at bricks-and-mortar stores rather than online despite COVID-19, according to research at Monash University.
The annual Retail Monitor survey of 500 Australian shoppers shows that on average 59% of total non-grocery consumer spend was made in physical stores.
Online marketplaces also grew in popularity, accounting for 10% of consumer spend, only just behind retailer websites at 15% and online-only retailers such as The Iconic and Kogan at 11%.
The survey, compiled by researchers at the Australian Consumer and Retail Studies (ACRS) unit in the Monash Business School, shows 70% of Australians bought clothing, footwear and accessories in store in the six months up to May.
Household items (54%) and personal care products (52%) were also popular purchases. Consumer electronics grew 32% and media and entertainment products 26%.
Some used lockdown as an opportunity to clean out their wardrobes and homes, with discards sold on websites such Facebook Marketplace and Gumtree.
Consumer electronics, and media and entertainment items – such as TVs, DVDs and gaming consoles, and computer monitors – were also popular during lockdown.
Shoppers expect to use online channels more in the next six months due to COVID-19.
“Many shoppers used online shopping channels like marketplaces for the first time during the shutdown, when physical stores were no longer open,” says Dr Eloise Zoppos from ACRS.
“And they expect that they will be using online channels more in the second half of the year, suggesting they have become more comfortable and confident in their use.
“But it was surprising to see, especially during the early period of the COVID-19 pandemic, that people still visited and trusted physical stores for non-grocery related purchases. That should give retailers of all sizes confidence that people still value a personalised shopping experience.”
Despite COVID-19, almost half (49%) of consumers said they would continue to shop at physical stores for non-grocery purchases in the next six months. About a quarter (23%) said they would use the physical store less.
More than one-quarter of shoppers said they would turn to online retailer websites for their purchases in the next six months, with 24% saying they will use online-only retailers.
“It’s been a tumultuous first half of the year, but retailers who are nimble, agile and prepared to adapt to new consumer and shopping behaviours, are going to be successful in the long-term,” says Zoppos.
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