Online retailer moves into high street

by Simon Canning @ The Australian

Clicks and mortar retailer dstore.com.au is about to become a bricks and mortar store as it launches a bold move into high street shopping precincts.

CEO Andrew Cooper told Media the decision to open the retail outlets to operate in conjunction with the online store was the culmination of a vision originally planned when dStore was launched a decade ago.

The decision by dStore to expand from virtual to reality comes as online retailers continue to enjoy a surge in popularity as cash-strapped consumers look for better deals on the internet.

Mr Cooper said dStore would initially open a number of stores in southeast Queensland to test the market before potentially taking the strategy national.

“We expect to have the first prototype open before Christmas and plan to have 12 stores in the Brisbane metropolitan area,” Mr Cooper said.

“We’ve found that certain customers research online but still buy on the high street.”

The retail stores would stock a selection of the total inventory available on the website, while items not stocked in store would be available from the shop the next day or would be shipped to customers’ homes.

He said the design of the store would aim to reflect the online experience of shopping at dStore, while online kiosks giving access to the full range of products would also be available.

While dStore plans to move into the mainstream retail sector, Mr Cooper said online sales would remain at the core of the business.

“We’re not going to bet the house on this,” he said.

He said that dStore had seen solid revenue growth of 10 per cent over the past year, even as traditional retailers were reporting falling sales.

“I would call it a challenging environment but we’re expecting 10 per cent growth this year,” he said. “The main thing for Australia is that habits take time to change and maybe a generation of time.”

Mr Cooper said he expected a presence in shopping malls and main streets would create further awareness of the brand, and a tipping point for the online retail industry was not far away.

“In the UK, for example, three years ago the market suddenly grew by 70 per cent in just a year,” he said.

dStore now has about 250,000 to 300,000 online visitors a month buying products ranging from electronics and household appliances to fashion.

Source: The Australian (p.34), 8th June 2009