The distinction between physical and digital retailing is forecast to become increasingly porous as online shops look for new ways to deliver their products, according to KPMG.

In its Australian Retail Outlook 2021 report for InsideRetail, the consultancy found the rapidly growing ‘ecommerce’ sector is fast becoming “just commerce”.

“Consumers are doing as much as possible through digital and contactless channels, even when shopping in-store,” the report noted.

The growing tide of digitally-integrated shopping experiences can be seen in the increasing demand for digital payment options, same-day delivery, and click-and-collect.

The report noted that click-and-collect – and the closely-related ‘drive-and-collect’, where staff bring pre-purchased goods directly to customers’ cars – represent an acute overlap of physical and digital retail.

“Click- or drive-and-collect merge the online and offline worlds by bringing shopping journeys that started online to the physical store, in turn highlighting to people entering the store the convenience of online shopping,” it said.

Returns and delivery take centre stage

As part of the report, KPMG surveyed retailers to understand which customer expectations they believe will lift in the coming twelve months.

The two most commonly-cited concerns were delivery speed, and number of delivery options.

“Unsurprisingly, now that consumers are more accustomed to online shopping, most retailers believe they will demand more in terms of delivery,” the report said.

“Almost half said consumers will expect more in terms of delivery speed and 35.07% said customers will want more delivery options available to them.”

The returns process is also tipped to be a major bugbear for consumers. 

ClearSales country manager for Australia Ralph Kooi cautioned that simplifying returns will be key to retailers looking to differentiate themselves from competitors. 

Mr Kooi cited data from AustraliaPost showing 86% of consumers rate the ease of returning digitally-bought goods as being important to their purchasing decisions.

And research from ecommerce software-as-a-service (SaaS) platform BigCommerce found 62% of Australian and New Zealand shoppers have switched to online retail specifically to take advantage of free returns.

Miles ahead on last mile

The massive growth in ecommerce has opened a new market opportunity for ASX-listed company TZ Limited (ASX: TZL), according to the company’s CEO Scott Beeton.

The company operates one of the world’s most advanced access control platform, and has a range of digitally-enabled locks clients can use to provide their staff or customers with keyless entry to lockers, doors, or buildings.

The company’s solution allows retailers to place digitally-purchased goods into a secure locker bank – either at a physical store or standalone collection hub – and notify customers electronically. 

Customers can then collect their items at any time of the day or night without needing to queue up or deal with staff in a face-to-face environment.

In instances where a product is incorrect, faulty, or unwanted, customers can also return the product using the locker – with the entire interaction managed by TZ’s market-leading software.

“This sector is going through huge growth and it’s a large, addressable market for TZ,” Mr Beeton said.

After a corporate restructure and series of key internal changes (which saw the business’ fixed operating expenses reduced by $2.5 million) Mr Beeton said TZ is now well-placed to capitalise on this emerging market.

To learn more about the e-Commerce boom, click-and-collect, and how TZ is leading the charge to improve collection options amid this trend, join a live investor briefing with TZL’s CEO, Scott Beeton. Book here. 

Stay up to date with the latest TZ Limited company news and announcements register your details on their investor centre.

Reach Markets have been engaged by TZL to help manage their investor communications.

Sources:

• KPMG: Australian Retail Outlook 2021
• Marketing Mag: 2020 changed the way Australians shop. Can your store keep them in 2021 and beyond?