The Impact Of Online Retail On Australian Gdp

In the United States, their are about 1 million outlets (stores), and numerous amounts of online retailers that sell items to the public. The demand in this industry is primarily driven by spending and interest rates. Due to this fact economic health affects consumer confidence and spending. But overall there has been a consistent trend of sales in the sector as a whole. Overall in the United States, the industry has a combined revenue of about five trillion dollars. Revenue (in current trading dollars) for retail trade in the US is to forecasted to grow an annual compounded rate of five percent between 2015 and 2019. In addition, total United States retail sales increased 2.1 percent in the first ten months of 2015 compared to the same period in 2014.

GDP, or gross domestic product, is the sum total value of all goods and services produced by a country within a given year. To achieve this sum, everything produced and exported, all of the money spent by consumers and government, investments, and many other contributing factors are calculated and combined. A nation’s GDP is used as the main indicator of the economic status of that nation. In general, the higher a country’s GDP is, the greater the health of that country’s economy. However, GDP is not as helpful or accurate a calculation as “real GDP”. Real GDP is a term that refers

The Australian department store sector has undergone significant change over the past decade. The discount department store is increasingly competitive. Financial crisis has resulted in higher unemployment rate and lower consumer sentiment, effecting retailing sales. However, these negative events have been partially offset by the Federal Government’s economic stimulus package and reduction of official interest rates. In non-food industry of Australia, there are restrictive property and zoning laws, causing barriers for entrants. The leading retailers such as Myer and David Jones have great brand identification and customer loyalty. Their large scale and mature supply chains ensure their cost

In this report I discuss the comparison of competitive strategies between the two major departmental stores in Australia being David Jones and Target and how they differ from each other. I also discuss the current issues that are faced such as Global Financial Crisis that has had much impact on both stores as well as future threats such as online shopping which is believed to be the latest trend is shopping which has already affected the stores but could make competition even tougher in the near future for both stores.

Online commerce was introduced to consumers in the mid-1990’s, and in the years since, it has grown exponentially. It started out virtually nonexistent and has become a multi-billion dollar industry. Nearly every retail sector has entered online commerce; clothing, electronics, home, health and grooming items, even food and groceries are starting to gain traction online. Online commerce sites rival traditional brick and mortar stores such as Walmart and Target, as well as other big-box stores. As online retailers such as Amazon continue to expand, many brick and mortar stores have been making their way online, indicative of an increasing movement towards online commerce. With more than 80% of the online population having made an online

It is stated in the last release from The Australian Bauru of Statics that online retail accounts for 3.0 per cent of total retail turnover. It is no secret that the rapid growth in online selling is a continuing development as technology advances but is our need for a convenient bargain compromising quality and the Australian economy?

With Australian domestic demand being the power behind sales numbers, the demise in consumer confidence due to these forces needs to be managed and rectified to ensure the health of the retail sector. Charney’s article discusses the crucial position the retail sector is in, along with the housing sector. The Australian economy is under further stress because of the abating mining sector, and this is causing the economy to look to other sectors for relief. The article from the Australian counters Charney’s commentary by ensuring a resolution to these concerns. The article was written prior to the handing down of the budget, with it forecasting the significant spending cuts which have taken place. The CEO Bernie Brookes claims “we’ve got a robust plan” to combat the effects of these budgets.

Thanks in part to microeconomic reforms in the 1980s, Australia has experienced two decades of continuous growth, low unemployment, controlled inflation, very low public debt, and a strong and stable financial system (Washington, DC: Central Intelligence Agency, 2013-2014). Australia has an efficient government sector, a flexible labor market, and a very competitive business sector (About Australia Pty Ltd, 2015). The four main components that make up the Australian market economy are trade, manufacturing, services, and finance. The services sector represents the largest part of the Australian economy, accounting for 75% of all jobs and nearly 70% of the overall GDP (Washington, DC: Central Intelligence Agency,

The Report gives the insight of Global Financial crisis and its effect on Australian Retails Markets and

Australia’s GDP rates stands at 1453.77(B) experiencing the weakest GDP growth since 2013. Although there was increase by 0.2 percent in the second quarter of 2015 the positive contributions from final consumption expenditures and investments failed to offset the decline in net exports. This led Australia to growth constraints mainly driven by a sharp fall in global prices of some export commodities. Comparatively, Australia were not affected by the global financial crisis and the banking system remained resilient rather. In addition, to Australia’s household spending rose by 0.5% and this helped in boosting growth and even accounting for 55.8% of its GDP, (World Bank, 2014 and BBC, 2015). This may impose

The traditional retail market has been transformed by technological advances. The internet today has allowed consumers to purchase various products from home ranging from apparel to groceries. The online shopping market has grown significantly within the past decade, leading to many online e-commerce startups such as Amazon, eBay, and mobile start-ups such as Instacart. While e-commerce provides convenience for shopping, it has created major disruption to the traditional shopping industries. Traditional retailers have since faced bankruptcy due to their inability to compete with such start-ups. The traditional American toy store, Toys R Us, announced its state of bankruptcy just last month due to a significant decline in sales. More and more consumers are turning to online giants such as Amazon to purchase daily items as a result of convenience. According to the Washington Post, Toys R Us is just one of more than 300 retailers to file for bankruptcy this year, as Americans ditch the shopping mall in favor of their laptops, smartphones, and tablets (Bhattarai, 2017). Shopping which used to require walking or a vehicle trip to stores is no longer required for consumers with online shopping. Online shopping has appealed to consumers worldwide by encompassing the business aspect of service convenience which constitute saving time and/or effort (Jiang, Yang, and Jun, 2012). For consumers whom have busy lives and those whom are physically disabled, online shopping is a positive

These past couple years there has been a decline on in store sales throughout the year especially around the holiday seasons. The main reason for this is the new trend of online shopping. Online shopping has started to become one of the main ways for many people to shop because of how convenient it is, you can sit at your computer at home and order what you would get at the store. The origin of online shopping started from an English professor named Michael Aldrich in 1979 when he made a new system that made online purchases capable and safe (Duncan, E). The trend of online shopping is beneficial to society because it makes shopping very convenient and easy.

Shopping has become easier to do now that almost everything is electronic. When it’s time to go back to school shopping, all you have to do is hop on the computer and find what you need, and have it delivered to your home. This makes it easier for parents with small children or even parents who live in Weatherford away from major shopping centers. Brick and mortar shopping took place in a storefront only; so, if you were looking for something specific and they didn’t have it, you would have to order it online and ship it to the store anyway. Now that stores have decided to utilize the internet people can do the ordering from the comfort of their own homes. My hypothesis is that online shopping will make brick and mortar shopping obsolete. While there are benefits to shopping online, there are also many downsides which will be discussed later on.

Household consumption alone accounts for approximately 60% of Australian Gross Domestic Product (GDP) and it is the GDP that determines the growth and success of the economy (Graph 1).

he Internet and Web has left a retail presence that many store-based retailers are now discovering before it becomes to late. The internet has generated sales for retailers to where it can solely be used as the main source of revenue for the business. The companies who have established a store location for its goods and services are developing ways to explore and expand its retailer business to the Web to increase its revenue. The Web has also allowed companies to expand its business geographically to other states in America and to the other countries outside of America. An American company located in Richmond, Virginia can now sell millions of dollars worth of products to customers in the UK, Japan and Brazil. I’ve bought several clothing