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Brick-and-mortar retailers gaining ground on Web-only, off-shore rivals

October 11, 2012

An analysis by the Commonwealth Bank of Australia reported by The Australian Financial Review found that brick-and-mortar retailers are gaining ground on Web-only, off-shore rivals as spending at online domestic retailers rose by 40 percent in 12 months, according to an article in the Technology Spectator. 

The analysis quells fears from traditional retailers that they were losing market share to online-only retailers like Amazon, the article reported.

"2011 was the year that online retailing hit the mainstream in Australia and while 2012 growth remains robust we appear to be hitting a point of indexation now that the online channel has been accepted by the masses," CBA retail analyst Andrew McLennan said.

"After a year of explosive growth in 2011, the pure-play online retail sales growth is converging with total online sales growth. This convergence suggests bricks and mortar retailers are making a greater impact online and stemming channel share losses to the pure play operators."

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