Shops face growing threat from online sellers
Radio New Zealand interviewed Coriolis Director Tim Morris on the growth of online sales in New Zealand:
“Tim Morris, director of market research firm Coriolis says retailers globally are going through a learning curve. He says now that many people have ordered products online, buying globally is an option and a greater number of websites will sell and ship to New Zealand which has ramifications for people throughout the retail industry and the supply chain.
Mr Morris believes the impact of online shopping is a threat to retailers, though it is hard to measure accurately and appears relatively marginal to date. “How much of the business that you’re losing or the struggle that you’re having out there is coming from the internet, and how much is coming from other New Zealand competitors is an unknown.”
But Mr Morris says while the lure of cheaper purchases overseas are attractive, there is the added issue of GST, returns and shipping. He thinks there will need to be a serious change in people’s spending behaviour before it really starts to hurt retailers.”