• ARI: On track to make waves. [Images: Wendell Levi Teodoro @Zeduce. org.]
    ARI: On track to make waves. [Images: Wendell Levi Teodoro @Zeduce. org.]
Close×

An Australian first is on track to revolutionise the way local retailers assess their competition.

Accounting and advisory firm BDO has joined forces with cloud-based software provider Retail Express to launch a free service, titled the Australian Retail Index (ARI).

Firm BDO has extensive experience in the retail sector and ARI founder and BDO national retail lead partner Simon Scalzo is adamant there is “nothing like it on the market today”.

ARI will operate across four key categories, namely: Fashion and Accessories, Furniture and Homewares, Sporting and Recreational Goods, and Other General Retail.

Phase one, live from this month, will compare the percentage change in sales in each category from week to week, listing sales dating back to December 2012.

While 60 percent of purchases in stores are card-based, which is the only information generally available, the ARI is based upon 100 per cent of transactions, including cash sales and lay-bys.

Phase two of the ARI, to be introduced later this year, will be a subscription model, providing more detailed information.

While phase one will remain freely available, phase two will provide daily updates and a state-by-state breakdown. Data will be divided into metropolitan and regional sales.

Retailers who subscribe will also be able to look at the average size of customers’ purchases and return rates.

Commenting on his creation, Scalzo said ARI is set to shake up the industry.

“The Australian Retail Index will deliver data that is far more detailed and timely than what is currently available.

“Our information will enable retailers to react to upturns and downturns in business as and when they happen.

“It will give them access to market intelligence quicker than ever before, enabling streamlined decision-making,” Scalzo said.

“More international retailers are making their presence felt in Australia - for instance, H&M just launched here in the past few weeks - and the rise in online retailing means those involved in bricks and mortar need to be a lot smarter.

“The Australian Retail Index will give them an edge. Retailers will be able to benchmark their performance against the market and their peers, and make time sensitive decisions about their businesses.”

Scalzo added that ARI will look at thousands of individual retail stores nationally and has a high degree of statistical relevance.

BDO's partner, Retail Express, operates in Australia, New Zealand and the UK and has been collecting the data for the best part of a decade, but it has not previously been made openly available to the market.

Retail Express CEO Aaron Blackman said he believes the Australian market is now ready for the change ARI will bring.

“Our research has shown there’s a strong appetite for such a revolutionary product that has the potential to change the way retail businesses operate,” Blackman said.

“The Australian Retail Index will also help diagnose the health of the wider retail economy and plot general trends.

“No confidential data will be released and we will respect the anonymity of the providers,” he said.

The ARI will be available on computers, tablets and smart phones via a secure app.

comments powered by Disqus