Research Proposal – Factors Affecting Profitability in Retail Sector Australia

Posted on November 13, 2021 by Cheapest Assignment

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Research Proposal - Factors Affecting Profitability in Retail Sector Australia


The retail sector consists of all the shops that connect the manufacturers and the consumers by delivering the goods obtained from the producers and offering them to the ultimate consumers. The shops may be of the traditional grocery stores, supermarkets and the recently blooming online stores that supply to the customers the goods required by them. Retail sales would act as an indicator in predicting the economy and the health of the people in a particular country. When the sales of the retail sector in the country increase, then it means that the consumers of that nation have access to more disposable income and are probably confident in their spending pattern (Kocic and Kocic 2016). To simply put, retail can be defined as the penultimate point in the marketing chain before a product reaches the hands of the customer.

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Problem Statement

The Australian retail sector, in recent times, has been suffering badly with sales being hugely affected due to various reasons. The global economic crisis can be a valid reason for this as the strong Australian dollar value can act as an influencing factor in this regard. The retail sector has managed to get along till recently but the growth numbers are not pleasant when the country’s whole sector is taken into account. The inflation in the country with the prices of the rent, physical store maintenance and raising capital has become tedious (Consulting Technology 2012). “What needs to be done for overcoming these hurdles?” is the question here.

  • Can productivity be boosted up using streamlined functions?
  • Could the customer buying behaviour be used to increase sales?
  • Can the management system in logistics be made efficient to improve effectiveness?
  • Can the online presence be made sophisticated to attract international retailers?

Literature about Retail in Australia

The explosion of smartphones, the development of telecommunications, and the bloom in social networks in the retail industry are growing rapidly. This has led to the country’s retailing into facing much competition in the global scenario. This competition is exposing the sector to an international market where people can have several options to select from rather than from a single seller. This serves as a threat to the country’s retailing. Destabilization becomes the additional factor when more players come into action from other countries. The habits with which the customers prefer to purchase things have changed and the alteration of customer psychology plays a crucial role after the reduction in the retirement savings after the global financial crisis (Services Skills 2001). The average household savings has decreased steadily to the point where it has gone below the confidence levels of the consumers. The forecast period in Australia may show records of the possibility of going for a positive value in the growth of the retail sector but the degree of positivity is not that high. The prices of the commodities sold may be a key factor. The lesser population of the country also impacts the economy as there is a smaller market for the country to sell to the native customers (Business insider 2016). A modest growth can be expected in Australia’s retail sector. This would bring down the share market value of the companies in the global market and ultimately affect the growth of the economy.

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Variables and Hypotheses

Hypotheses can be formed in order to predict the outcome of the Australian retail industry so as to find out whether or not the customers who opt for other options of buying would come back to the native sellers or not.

Hypothesis 1

H1:  Introduction of foreign players would affect the retail sector in Australia.

H0:  Introduction of foreign players would not affect the retail sector in Australia

Hypothesis 2

H1: Effect in the retail industry would have a significant change in the Australian economy.

H0: Effect in the retail industry would not have a significant change in the Australian economy.

The variables in this hypothesis are both dependent and independent. They can be as follows.

Independent variables: The independent variables identified in this research study are retail stores, supermarkets, online retail websites. These variables will be used independently to conduct the analysis.

Dependent variables: The dependent variables identified in this research study are the consumer preference in purchases, buying behaviour exhibited, choosing the accessible store of convenience etc. These variables tend to depend on several other factors which are to be considered while using them in the analysis.

Operational Definitions and Measurement

The retailing sector has a huge scope in the international market and it is sufficient enough for the country to retain its position as the leader among the competitors. Innovative measures should be taken into action to perform better inside the country and flourish again as a successful venture (Numbeo 2016). The customers’ buying behaviour must be altered just so that the preference in buying their goods and getting the services. The variables have to be analysed properly before deciding on what should be done to refrain from the original rate at which the market was performing in the global scenario (Business insider 2016).

Research Design and Methodology

The strategy in conducting the research of considering the retail stores to go back to the roots and start over is by thoroughly planning before execution of anything. The availability of the resources in the country can be used in such a way that it would be better to contribute to the overall economy of the country thereby gaining profits not only for the company but also for the other household individual across the country (Flannigan 2011). The research has been predominantly targeted at the few factors that may or may not preferably be obtained from primary data. The secondary data is much helpful in interpreting the scenario on how the country’s buying behaviour works (Flannigan 2011).


The samples in determining the output of the retail industries are from the consumers of the daily use products in grocery stores, supermarkets and other retail outlets from physical and online outlets.

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Data Analysis

The Australian market comprises hefty opportunities. This opportunity is the key to the management of the country’s retail sector. The sales that usually happen have significantly reduced and this is not good news. The data that the research holds provides adequate information about the situation of the retail industry. People who are responsible must take necessary actions to sustain the sales (Numbeo 2016). The Australian retail industry is vulnerable as it is even though the wealth of the country is substantially high.


Online business is the key to keeping the customers intact. This can be used to satisfy the customers of the native and also the new potential customers from the other countries also. Mobile commerce has become a trend and giving in to this trend can be a positive boost for the companies who offer goods and services. Internet of Things is the future. This will form a huge industry for the companies to capitalize on (Consulting Technology 2012). New inventions would come into play and Australia must take immediate actions to withhold its position in the market.

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In a nutshell, the Australian retail market is weak and needs much effort to make it work efficiently again. The things that are needed to be done are the main care that needs to be taken by the retail employers to change their strategy in handling the customers where they can get innovative and provide satisfaction by fulfilling their needs (Kocic and Kocic 2016). This monitoring should be the primary priority in considering the economy of the country and the outcome with which the retailers can gain profit. The customers are ready to buy from the foreign stores because of all the foreign companies that are inside the country as of now. This has to be tackled properly and kept under control in order to have the proper sales and gradual growth in the sector.

References (2016). Australia has a problem 2016. [Online] Available at: [Accessed 24 Aug. 2016]. (2016). 5 Predictions for the future of retail in Australia. [Online] Available at: [Accessed 24 Aug. 2016].

Consulting Technology, 2012. An insight into the challenges and rising complexity facing the retail and wholesale sector. [Online] Available at:,d.c2I [Accessed: 24 Aug 2016]

Flannigan, N., 2011. Economic Structure and Performance of the Australian Retail Industry. Productivity Commission Draft Report.

Kocic, A. and Kocic, A. (2016). What Is the Meaning of Retail Sector? | eHow. [Online] eHow. Available at: [Accessed 24 Aug. 2016]. (2016). Cost of Living in Australia. [Online] Available at: [Accessed 24 Aug. 2016].

Services Skills 2001. Drivers of Rapid Change – Stock take of Literature and Research on Australian Retail. [Online]. Available at: [Accessed: 24 Aug 2016]

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