4 hours Ago By Varun Godinho
With Australian retail performing better than expected according to the latest data from the Australian Bureau of Statistics (ABS) which showed that retail sales decreased 0.1% in December, from November, less than the 0.7% drop that analysts expected, retailers are now keen on making sure they have the right strategies in place to grow this year.
From rethinking loyalty programmes and Buy Now Pay Later (BNPL) options, to organising faster deliveries and conducting more frequent sales, they are mulling a number of strategies. Almost half of the nation’s retailers (47%) are now leveraging loyalty programmes to secure repeat purchases, shows new research by CouriersPlease which is the courier partner for retailers including Big W, Kmart, and Target, among others. Meanwhile four out of 10 (43%) are embracing BNPL to attract business from financially stretched shoppers.
The survey which polled 203 retailers across Australia, found that retailers are favouring largely online strategies that provide value and flexibility, with large businesses (more than 200 employees) particularly embracing loyalty programmes at 65% – more than double the rate of micro businesses (28%). Almost half (49%) of medium-sized businesses (51-200 employees) are doubling down on BNPL. The survey reveals frequent sales (31%) and next-day or same-day delivery (30%) are key tactics being used to boost revenue.
There were several tools that retailers were using to boost sales and customer growth. These ranged from the use of artificial intelligence to enhance customer service and streamline operations (24%) to omnichannel retailing (22%). Among medium-sized retailers, 100% of them adopted at least one tool to boost loyalty or drive sales.
Among micro businesses, 27% said they don’t use any tools to increase revenue, which could be attributed to limited budgets and resources. A state-wise breakdown of retail innovation strategies shows that Queensland retailers dominate the loyalty programme game, with 53% prioritising customer rewards, the highest rate nationwide. BNPL follows closely, with half of Queensland businesses (50%) offering flexible payments to attract budget shoppers.
In contrast, West Australian retailers lag by a large margin, with just 18% admitting they use none of the surveyed strategies, even though 36% used loyalty programmes and 41% used BNPL. South Australian retailers take the lead in using frequent sales to drive revenue at 47%, while NSW and Victoria offered a more balanced approach, blending loyalty programmes and BNPL with next-day delivery (32% in NSW). When asked if their chosen tactics were working, 43% of all retailers said they had seen greater customer loyalty, while 29% reported increased sales in the past year.
However, 22% admitted their strategies had not delivered results. “These results underscore the importance of aligning strategies with shopper priorities. Retailers leveraging multiple tools, particularly those focused on value and convenience, are seeing the strongest gains in loyalty and sales,” said Richard Thame, CEO at CouriersPlease.
“This year will be a year of innovation, with loyalty programmes and personalised solutions set to cement their role as cornerstones of retail success.”.
