Like many
centres around the country, Chermside seems to be in a constant state of
re-building and expansion. More stores, larger stores, more food to be sold and
new, diverse food outlets.
I walked
through the new area and sure, it was fine. JB HiFi had moved to a larger
outlet, as had Kathmandu. Nike joins Adidas as specialist stores, the later
having moved from the older area of the centre.
However, are
there really that many more people, with the necessary disposable income or
credit card capacity to justify this continual expansion.
In the
subsequent weeks, several retailers announced disappointing sales figures and
others announced update, reduced sales expectations for this year.
On-line
sales continue to grow meaning many of our retail sales dollars are passing by
traditional shopping centres.
And then
Amazon announce they are taking on Australia, aggressively, warehousing goods
on shore for delivery, quickly and
cheaply. Amazon not only have a history of expansion success (see Spain for
example), they research and plan meticulously, invest heavily and execute
superbly and dare I say quite ruthlessly. The commit for the long term – they do
it properly.
In Australia
last year, on-line sales reached $20.8 billion, an increase of 14.2% over the
previous year (source National Australia Bank Research).
According to
Nielsen Omnibus, 56% of all Australians say they will consider purchasing from Amazon,
a figure that must cause concern for traditional retailers, and in particular
electrical and clothing outlets.
The more
things change, the more they stay the same. Shoppers are forever attracted to
more convenience when shopping.
The self
service supermarkets of today, offering the convenience of everything being under
the same roof superseded a time where the first stop on the shopping trip was
the greengrocer for fruit and vegetables, it was then off to the butcher for
meat and finally the milk bar for milk, cream, ice cream and cheese.
Speak to
those “experienced” enough to remember; they will talk of a time where the shop
keeper knew you by name, everyone, where the greengrocer might say the carrots
are not that good today but the parsnips are superb.
At each “shop
stop”, there was a chat about the news and views, the goings on up the road and
the latest film showing in the picture theatre on the corner. And if in
Melbourne, no conversation is complete without debating the weather.
As much as
shopping was an important communication and social activity, the sheer convenience
of the one stop supermarket resulted in the demise of the local speciality
retailer.
We are
merely seeing history repeat itself. The convenience of on-line shopping could
ultimately replace much of the need for Chermside style shopping centres, and
it could be quicker than we expect.
At the start
of 2017, American retailers Macy’s and Sears announced the coming closure of
218 stores. Worse still, another Mall based retailer, The Limited, suddenly
closed down all 250 stores with 4000 staff losing their jobs.
The impact
such closures has on the Shopping Centres they occupy is potentially crippling.
Australians
are known for being rapid adopters of technology and change.
Amazon
launching in Australia will have an impact, and one that could change our
societal culture and behaviours, quickly.
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