MEDIA RELEASE – Although Australian bricks and mortar retailers have been slow to expand online, they have a distinct advantage over web-only retailers, according to the Executive Director of Salmat Digital, Paul Marshall.

In his presentation to the Online Retailer conference in Sydney today, Paul said that brand awareness, loyalty and an existing customer base are key assets when Bricks and Mortar retailers take their business online. Combine that with the power of the store network to give their customers a true multichannel shopping choice and they have a strong playing hand.

“Despite being slow to adopt eCommerce, the history and level of trust retailers have built with their customers will pay major dividends when they expand online, Paul said.

“Data from the US shows that consumers of multichannel retailers, or retailers with both a physical and online presence, are proven to be more loyal, buy more per visit, and have a higher lifetime value.

“According to the US Internet Retailer website, of the top 100 online retailers in the US, Bricks and Mortar retailers make up the largest segment (circa 44%) and are also the fastest growing segment over web-only retailers, mail-order retailers and manufacturers. Fast movers include Costco, Wal-Mart, Sears, and Best-Buy.”

“This shows that despite a slow entry, the bricks and mortar retailers are in a strong position to succeed in selling online. They can easily play catch up and overtake web-only retailers.”

In his presentation, Paul emphasised to retailers the importance of laying the right foundations, rather than rushing into an ill-thought out online strategy.

“Success in multichannel retailing is a marathon not a sprint. Making sure your house is in order is essential, develop the right strategy and invest where it matters.”

In 2009, eCommerce in Australia is expected to generate around $18 billion in sales.