2020 has been a year filled with challenges for Australian retailers.
The bushfires and the COVID-19 pandemic have forced a string of voluntary administrations, rapid eCommerce uptake and bricks and mortar consolidation.
Yesterday, retail giant Mosaic Brands announced that over the next two years up to 500 stores could close. Meanwhile, Michael Hill closed 17 underperforming stores during FY20.
Online retailer Payday Deals CEO and founder Rojie Tadros said that it's not surprising retailers are closing their stores.
"It’s no surprise that another big retailer is closing stores.
"The reduction in regular shopping centre foot traffic plus the relative ease of online shopping, have made regular trading conditions for ‘bricks and mortar’ stores beyond challenging.
"The structural headwinds facing retailers requires an entire rethink of traditional business models," he said.
Tadros added that COVID-19 has also changed consumer buying behaviour.
"People no longer want to battle queues of traffic and busy car parks when they can comfortably shop via a few clicks on their laptop.
"A failure to innovate and the changing nature of consumerism have combined to create a doomsday scenario for retailers - which is only going to get worse in the short term.
"When consumers can have their products delivered to them on the same day of purchase - it’s no wonder that shoppers are voting with their feet to enter a new retail paradigm, which is online," he said.
What are your thoughts on the impact of COVID-19 on consumer behaviour? Leave your comments below.