Retail is the process of selling products and goods to end consumers. The retailers procure products and goods from the manufacturers and producers. According to an estimate, the market size of Australian Retail Industry comprised approximately 358.9 billion Australian dollars with a growth rate of over 3%. Today, we’ll discuss the PESTLE analysis of Australian Retail Industry; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Key Areas in Australian Retail Industry
- Health and Beauty Cosmetics
- Electricals
- Home and household items
- Clothing and footwear
- Grocery and food items
Top Retailers in the Australian Retail Industry
- Bunnings
- Chemist Warehouse
- Harvey Norman
- JB Hi-Fi
- Coles
- Woolworth Supermarkets
- Target Big W
Distribution Channels in the Australian Retail Industry
- Drug Stores and Health and Beauty Stores
- Gas stations and Retail Convenience Stores
- General Stores and Discount Stores
- Specialized Stores of Clothing, Footwear and Accessories
- Online Stores
- Hypermarkets and Supermarkets
- Food and Drink Specialist
Political Factors Impacting Australian Retail Industry
Some of the main political factors in the Australian Retail Industry PESTLE analysis are as follows;
I-Government Regulations
The consumer protection and safety government regulations are very strict are very strict for the retailers and the overall retail industry. They focus on areas like health and safety regulations, labeling and description, ingredient disclosure, data privacy laws, and others. However, the objective of strict government laws is to ensure the health and safety of ordinary consumers.
II-Trade Policies
Australian Retailers import products and goods from various suppliers all over the world. The trade policies of different countries are variable depending on the type of government in power, the country’s foreign policy, and diplomatic relations. For instance, if a country doesn’t have a good trade alliance with the Australian government, they would increase taxes and trade tariffs to reduce the trade with the particular country.
III-Political Stability
Australia has a stable political environment and it plays a key role in the growth of businesses and companies. For instance, if the importing supplier country is going through political turmoil, roadblocks, procession, and other violent activities, then it causes delays and disruption of supplies and materials to the production and manufacturing facilities.
Economical Factors Affecting Australian Retail Industry
Some of the main economic factors in the Australian Retail Industry PESTLE analysis are as follows;
I-Economic Growth
According to an estimate, the GDP of Australia will be approximately 1.897 trillion USD in 2023; the market size of Australian Retail Industry will be over 358.9 AUD in 2022. It shows that the Australian retail business market has been growing steadily over the years. The overall economic growth of the country attracts potential investors and businesses to invest their capital in the country.
II-Consumer Spending Habits
The consumer spending habits in a particular country directly impact the growth of businesses and companies. The customer spending habit is heavily reliant on their financial income, employment status, and disposable income. However, Australia is collaborating with various investors and the business community to expand its business operations into the country and create job opportunities for the people.
III-Currency Exchange Rate
Australian Retail Industry procures materials, supplies, raw ingredients, and various other products and goods from multiple countries in different currencies. The currency exchange market is highly unstable and it keeps changing regularly. However, a small change in currency exchange rate would increase the cost and expenses of products, and it negatively impacts the growth of businesses and companies.
Social Factors Impacting Australian Retail Industry
Some of the main social factors in the Australian Retail Industry PESTEL analysis are as follows;
I-Customer Market Trends
The customer market trends in the Australian Retail Industry keep changing regularly just like any other market across the world. It puts great pressure on retailers to keep updating their stock and follow the latest customer market trends. However, it allows them to ensure the long-term growth of their business.
II-Health and Fitness Awareness
Speaking of customer market trends, the customer market has become aware of the significance of health and fitness. They are investing a significant amount of capital resources in health and fitness products and goods like exercise equipment, clothing, sports shoes, and others. They want to live a healthy lifestyle by engaging in healthy activities.
III-Diet Conscious
The customer market has also become highly diet-cautious and they are paying great heed to the type of food they’re putting into their stomach. They’re willing to pay extra for organic and sustainable food, and it allows them to live a long and healthy life.
Technological Factors Affecting Australian Retail Industry
Some of the main technological factors in the Australian Retail Industry PESTEL analysis are as follows;
I-E-commerce Platforms
Many Australian Retailers have established their e-commerce platforms and online stores. It allows them to offer the products online and home delivery service to the customers. As a result, the sales of Australian Retail Industry have been increasing significantly through online and digital channels.
II-Improved Customer Service
In order to improve the customer satisfaction level, Australian Retail Industry is investing a significant amount of capital resources in the automated chatbots. It allows them to offer 24/7 customer service, and they could reach out to the company anytime and the automated chatbots would answer them immediately.
Legal Factors Impacting Australian Retail Industry
Some of the main legal factors in the Australian Retail Industry PESTEL analysis are as follows;
Regulatory Compliance
The Australian Retail Industry needs to comply with the regulations and policies of different countries. They comprise health and safety regulations, consumer protection laws, data privacy laws, labeling and description, and others. However, regulatory compliance would help them to smoothly perform their retail operations without any delays and disruption.
Environmental Factors Affecting Australian Retail Industry
Some of the main environmental factors in the Australian Retail Industry PESTEL analysis are as follows;
Sustainability Initiative
The Australian Retail Industry has made a strong commitment to the environmental sustainability initiative. It comprises investing in renewable sources of energy, ethical sourcing, biodegradable packaging, and others to reduce the carbon emission rate. However, it allows them to keep up with the growing environmental sustainability trends.
Conclusion: Australian Retail Industry PESTLE Analysis |PESTEL Analysis of Australian Retail Industry |External Environmental Analysis of Australian Retail Industry | Strategic Analysis of Australian Retail Industry
After an in-depth study of the pestle analysis of Australian Retail Industry; we have realized that the Retail Industry plays a key role in the country’s growth. If you are learning about the Australian Retail Industry PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
