Forsyth Barr broker Lyn Howe says while it is debatable whether Amazon will head across the Tasman after its Australian endeavours, it is clear local retailers are becoming increasingly focused on online strategies.September marked the end of the extended reporting season for listed retailers.
Results highlighted material growth in e-commerce in the 2017 financial year, notwithstanding some of the growth was off very low bases.
"Listed retailers achieved impressive e-commerce sales growth of 37% in financial year 2017, accelerating from 27% in 2016."
As a proportion of total sales, e-commerce channels represented 7.1% in 2017, up from 6.4% in 2016, Ms Howe said.
That was broadly consistent with the wider market.
Also pointing to the heightened competition in retail, Top Retail, the company behind global brands Topshop and Topman, in New Zealand, had been placed into voluntary receivership, she said.
The company, which had been trading in New Zealand for less than two years, had two stores — Auckland and Wellington — and was due to open a third in Christchurch.
The company’s directors commented it was "apparent the company was unable to continue to trade due to the losses being incurred". Topshop’s Australian operator went into voluntary administration in May, Ms Howe said.
Otago-Southland Employers Association chief executive Virginia Nicholls said her retail members were concerned about the arrival of Amazon in Australia, and a possible move to New Zealand.
In the past decade, consumer behaviour had changed significantly and retailers were adapting to those changes.
"There is no doubt the electronic platforms are changing the way our traditional retail outlets are operating."
Some retailers were positioning themselves well, having both a traditional bricks-and-mortar store along with an e-platform, she said.
They were successfully driving consumers from their own online presence to purchase products in their stores.
Bricks-and-mortar shopping did have a place and the successful retailers were seen as being part of a vibrant town centre, providing a strong sense of community identity.
Retailer outlets, such malls, often offered visitors an experience well beyond shopping for goods, Mrs Nicholls said.
Many were now meeting places with cafes, dining experiences, exhibition space, residential spaces, hotels, offices and entertainment options.
Good transport was essential.
"Dunedin has done this well, with a vibrant central city, a good mix of retailers, modern retail experiences, great cafes, accommodation close to the city centre, a tremendous shopping experience with transport links and residential housing nearby."
Within walking distance were the Dunedin Public Art Gallery, Otago Museum, Toitu Otago Settlers Museum and other tourist attractions.
Invercargill was planning a new city centre mall which would change the dynamic of the central business district, increasing the vitality of retail. There would also be opportunities to develop hotels, inner city living which, in turn, would attract more businesses to the centre of town.
Retailers were now concentrating on providing different experiences and exceptional customer service, along with a great in-store atmosphere, Mrs Nicholls said.
"Shopping is more than an online platform and is an experience that cannot be duplicated. However, retail outlets ignoring the e-platform opportunities do this at their peril."
Some retailers had innovative products with a unique point of difference and could also take advantage of e-platforms to sell their goods online outside New Zealand.
It was important for shoppers to support their local retailers if they wanted some of them to survive the online revolution, she said.
There would be some retailers who might struggle in small towns but they would survive if their local communities provided support.
