Apps to Play Critical Role in Retail

As more shopping apps are launched this year, expect that this trend would change how businesses do retail. Future Laboratory founder Chris Sanderson said some 800 stores are likely to close down this year.

Sanderson said because of the popularity of mobile phones, it has become the first point of contact for many shoppers. Australian shoppers are also more technologically savvy and prefer to shop using mobile devices. This is likely to continue growing in the next 12 months and retailers must take notice.

Retailers would be left with no choice but to either adapt technologically or close shop. Some 500 to 800 stores are expected to go out of business this year.

More shopping apps are being developed that would provide shoppers the option to browse and buy online. Coles, Woolworths, and Westfield are just some of the retailers that have ventured into mobile shopping apps.

Last year, UK saw some 15,000 independent shops that closed down because of mobile shopping apps. Australian Retailers Association president Russell Zimmerman, however, believes that Australian retailers can still survive.