Season 1 | Episode 3 - Nigel Price (Host) Phil Moujaes (Guest) from PM Retail Intelligence specialist consultant in Retail, eCommerce, Digital Transformation, People and Culture, Distribution Strategies in the Australian market.

Digital Discovery Podcast - S1:E3

This podcast episode, hosted by Nigel Price, features a detailed discussion with Phil Moujaes, CEO of PM Retail and former GM of Bing Lee Electrics, about the evolving retail landscape in Australia. The conversation explores the repercussions of the 2020 pandemic, the rise of value-conscious consumers reminiscent of the last financial crisis, and the unpredictable future of Australian retail.
The podcast dives into the effects of the pandemic, including the oversupply issues in retail sectors with long lead times, and the resurgence of consumers seeking value for money as spending dips to levels akin to the last recession. The conversation also covers the implications of rising interest rates on spending and the difficulties faced by channel-based retailers.

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Introduction

Welcome to another episode of the Digital Discovery Podcast with your host, Nigel Price. Today, we invite you into the world of retail, focusing on the roller-coaster journey of Australian retailers amidst and post the COVID-19 pandemic. Joining us for this fascinating discussion is Phil Moujaes, CEO of PM Retail and former General Manager of Bing Lee Electrics, a seasoned industry veteran who'll provide deep insights from his experience navigating this dynamic sector.

Examining the Effects of COVID-19 on Retail Industry

COVID-19 forced numerous changes upon the retail industry. The pandemic accelerated the shift towards e-commerce, as consumers adapted to remote work, lockdowns, and social distancing. Retailers faced a sudden surge in online shopping, which many were not fully prepared for, highlighting the necessity of robust digital platforms. On the other hand, brick-and-mortar stores suffered significant revenue losses due to mandatory closures and decreased foot traffic. We saw an increase in contactless services such as click and collect and home deliveries as a result.

Dealing with the Stock Hangover

The pandemic created a challenging stock situation for retailers. A dramatic shift in consumer demand, combined with disrupted supply chains, resulted in surplus stock in some areas and shortages in others.

The Return of Value Conscious Consumers in 2023

The economic uncertainty sparked by the pandemic led to the re-emergence of value-conscious consumers, similar to the aftermath of the 2008 financial crisis. These consumers prioritise essential goods, discounts, and sales, pushing retailers to re-evaluate their offerings and pricing strategies. Phil offers insights into how retailers need to move boxes while maintaining profitability.

Retail Survival

With economic hardship and changing consumer behaviour, retail survival is not guaranteed. Successful retailers will be those that can adapt quickly, innovate, and deliver what consumers want in the new normal. Understanding these changing consumer patterns and adjusting business models accordingly will be key to survival.

The Influence of Increasing Interest Rates on Retail

Rising interest rates can dampen consumer spending, which impacts retailers. Particularly, it may affect big-ticket purchases made on credit. Retailers will need to be proactive and strategic in this environment, potentially offering more financing options or focusing on value offerings.

Retail Sales Surge in Australia Post-Pandemic

Despite the challenges, the Australian retail industry experienced a significant post-pandemic surge. This rebound can be attributed to pent-up demand, government stimulus packages, a shift in spending from travel to goods, and the quick adaptation of Australian retailers to e-commerce.

The Joy of In-Store Shopping

As restrictions ease, in-store shopping has seen a resurgence. Many consumers miss the social aspect and the tactile experience of shopping in-store. Brick-and-mortar retailers should leverage this opportunity to create unique, immersive shopping experiences that cannot be replicated online.

Key Strategies for Retailers

In these challenging times, retailers must stay agile and customer-focused. Understanding the customer experience at a granular level, enhancing the omni-channel experience, and prioritising safety are some of the strategies that retailers can employ. Nigel and Phil also emphasise the importance of strong supplier relationships, predictive analytics, and the adoption of sustainable practices.

Making the Most of Technology in Retail

The pandemic underscored the importance of technology in retail. This is not just about e-commerce but also includes contactless payments, augmented reality for product trials, AI for personalised recommendations, chatbots for customer service, and data analytics for demand forecasting. Retailers must embrace these technologies to stay competitive and meet consumer expectations.

The Customer's Path

Every customer is on a unique path, and understanding this journey is essential for retailers. Personalisation, seamless omni-channel experiences, responsive customer service, and loyalty programs can help retailers align with the customer's path and foster long-term relationships.