Australia is behind only the US and Canada in terms of digitally-influenced retail sales.
Deloitte has released its latest report 'Navigating the new digital divide – digital influence in Australian retail' with some surprising findings.
40 per cent of retail bricks-and-mortar visits in Australia are influenced by digital engagement, behind the US at 49 per cent and Canada at 41 per cent.
In addition, Australia is reported to be the sixth most concentrated smartphone market in the world and is tied with the US the developed country with the highest social media influence in the shopping journey.
The findings suggest that two thirds of domestic consumers use a digital device before shopping in physical retail stores, while 31 per cent use it while shopping.
47 per cent are believed to use their device to compare products, with 42 per cent using them to access product information and 33 per cent to check product availability.
Deloitte partner and retail industry leader David White believes that the report should shake retailers into evolving their business strategies.
“In our 'Retail Review Christmas Survey', we found just a third of Australian retailers citing omni-channel as their number one strategic priority.
“The findings from this digital divide report should be a wake-up call for the retail sector which is at risk of underestimating local consumer appetite for digital engagement.
“Global brands have educated Australian consumers to expect internationally competitive pricing, an endless aisle and greater shopping convenience.
“Digital will soon be the deciding success factor in retail.”
Deloitte digital partner also said that embracing digital influence will be key to the survival of Australian retail.
“Historically, local retail sales have not gone online in Australia as quickly as in other markets.
“That is fast changing.
“Digital is becoming an integral part of every element of the in-store shopping experience.
“Australian retailers need to understand how to harness its influence to increase conversion rates and order sizes.
“When consumers use digital devices to research, find and compare products – before, during and after shopping in-store – it boosts both average conversion rates by 25 per cent and order sizes by 21 per cent.”
The full report is now accessible online via Deloitte.