Aussie retailers need to adapt to a world built on speed

A recent survey shows that Australians are feeling more time-poor than ever, with 45% of women and 36% of men feeling “always” or “often” rushed, or “pressed for time”. Meanwhile, research has identified that almost one in four shoppers (23%) are willing to pay a premium for “same day” delivery.

In other words, consumers’ expectations are changing. Speed is becoming a point of difference, a new front of competition, between retailers. And many Australian retailers are lagging behind.

When a quarter of your customers are willing to pay a bit extra to have their online purchases delivered that afternoon, it is surprising more retailers are not investing in the “last-mile” – from the warehouse to the customer.

The Threat

The advantage physical stores always had over online was immediacy. Walk in, grab it and go. While online retail had an endless range of choice and often lower prices, shoppers had to wait.

But “same day” delivery undermines that, combining the convenience of online shopping with the immediacy of bricks n’ mortar.

New retailers and logistics companies are selling us time and convenience just as much as they are selling products or services. Take Ur-bit, a delivery provider operating in Sweden, Paris and London; shop online and get them to pick up and deliver to your home, office, and even your car. Read more

Gary Mortimer - The Conversation - 24 May 2017