Vend’s inaugural retail benchmark report has revealed the monthly revenue of Australia’s independent retailers over the past 12 months was 18 per cent higher than the global average.
The report compared data from over 13,000 retailers, with a particular focus on Australia.
Vend found Australian retailers’ average monthly revenues were also 17 per cent higher than in North America and 37 per cent higher than the UK, showing a stronger spending trend for Australia’s local stores compared to these overseas markets.
Average transaction values in Australia – the amount spent in a retail store per transaction – were the highest of all the main markets, 5 per cent higher than the global average. However sales volumes weren’t quite as strong, still up 5 per cent on the global average but sitting 19 per cent lower than in New Zealand and 16 percent lower than in the UK.
Dave Scheine, Vend’s country manager for APAC says the findings highlight Australian shoppers prefer value over volume.
“Over the past years factors like a lack of household income growth and cautious consumption have impacted retail sales, so the data may be showing that shoppers are simply being more selective with where they shop and what they buy. The growth of payment options such as buy-now, pay-later could also be encouraging spending on higher-value items, as shoppers are able to afford those purchases paid off over time.”
Sheine suggests the retail sector has seen a lot of disruption in the past year.
“So it’s encouraging to see these solid spending figures in comparison to other markets,” he says.
Shoe stores, hobby and musical instrument stores, and office supplies, stationery and gift stores all saw stronger sales volumes compared to other retail store types in the past 12 months. However the highest revenue figures where in stores with generally higher-value items such as furniture, electronics and appliances, and jewellery stores.
“Our data also shows that Australian retailers are yet to make full use of customer loyalty. That could really be hindering them in staying competitive against the bigger players. Only 48 per cent of retailers have loyalty enabled in their Vend POS system. And the number of customers stored in their databases per store is also 13 per cent lower than the global average – and 34 percent behind North American retailers. There’s definitely more our local stores could be doing to boost sales,” Scheine concludes.