According to an article
in the Sydney Morning Herald, foot traffic to Shops has fallen 4.4% since 2016.
This is just one of the many statistics that retailers are now amassing as they
attempt to understand and address retail sales decline.
Analysing masses of
data is fine, we need to understand what ails us, but sometimes it pays to
simplify, and here are what many commentators believe are the core issues.
1.
Consumers
Have Less To Spend - Rising household costs combined with stagnant wage growth
means that consumers are more considered about their purchases. They simply
have less to spend on discretionary goods. The spending pie is smaller.
2.
Consumers
Have More Choice - Consumers don't have to go shopping at physical stores,
including market's, because they can purchase online, and that activity is
still growing strongly. Even if they choose to tread the pavements, it is often
after they have narrowed their options, particularly on price, by browsing
online. The competition is larger.
3.
Standing
Out - If retailers are not price competitive, do not have timely ranges
(particularly in fashion), and have little else to make them stand out, they
will struggle. You need to stand out.
4.
The
Shopping Experience - much is made of creating a shopping experience for consumers
but isn't that just stating the obvious. Consumers with less money, more
options, and the ability to price shop in advance, are going to choose the most
attractive place to shop. It might be the destination that is most convenient,
or has the best food (the food offer is very important these days), or that
entertains in other ways. You need to be the best.
So let's get this
straight- consumers have less money, are better informed on price, and are only
going to seek out the best places to spend their money. That can't be too hard
to address can it?