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A u s t r al i a n B et a i l S ur v e y No v 2 0 1 9
THE DEC/ 2 01 9
RETAIL
SWAMP
TH E AUS TRALI AN
BE TAI L S URV EY
1
THE RETAIL SWAMP
A u s t r a l i a n B et a i l S u r v e y
Dec 2019
THE RETAIL SWAMP
THE RETAIL SWAMP
THE RETAIL SWAMP
THE RETAIL SWAMP
THE RETAIL SWAMP
THE RETAIL SWAMP
THE RETAIL SWAMP
2
THE RETAIL SWAMP
Australian Be ta i l S u rv e y
De c 2 0 1 9
INTRO
DUCTION
In 2015, Hammond Thinking conducted
one of Australia’s largest retail surveys,
concluding that the traditional bricks
and mortar retail industry was on
are a number of Australian-owned brands
fighting to usher in a renaissance of belief-
lead retail. We call them Betailers.
the precipice of a full-blown crisis of What are they doing that’s so different?
consumer engagement and, ultimately, What can we learn from them? This study
in-store spending. dives into the murk, and sets out the
new standard for retail experience and
Five years on, Hammond Thinking’s Brand engagement.
Agency, 50 Crates revisited the survey
and the situation is markedly worse.
THE AUSTRALIAN BETAIL
But not all hope is lost. In the slowly
sinking swamp of traditional retail, there
SURVEY 2019.
3
A u s t r a l i a n B et a i l S u r v e y
Dec 2019
A SCARY THING
HAPPENED ON THE
WAY TO THE SHOPS...
F
ive years ago, we conducted a The survey, conducted over six months The lowlights
comprehensive study of retail throughout shopping centres in • 10% of the brands featured in the
brands in Australia known as the Melbourne and Sydney, involved more 2015 Retail Brand Survey no longer
‘2015 Retail Brand Survey’. The than 350 visits to over 265 local and exist.
findings identified a multitude of threats international retail brands. The aim? To • 10% of surviving brands have
negatively impacting the Australian bricks discover who was moving with the times scaled down their bricks and mortar
and mortar retail landscape. and who had stood still. In that survey, presence.
Apple, The Body Shop, Nespresso and
These included; • A mass exodus (selling off) of
Lush took top honours, cementing
• The impact of unprecedented global Australian-owned brands to
themselves as perfect Be Brand retail
brand invasion. multinational corporations.
experiences (more on that later).
• Downturn in consumer confidence. Despite tax cuts and the lowest interest
As we approach the five-year anniversary rates on record, Australian consumer
• The meteoric rise of online retailers.
of the study, we decided to revisit the spending in shopping centres and
• Apathy in the part time retail research with a tighter lens on Australian- department stores is the worst it’s been
workforce. founded brands. What we found can in almost 30 years.1 Even the once
• Rising cost of commercial rent. only be described as depressing. More frenzied Christmas trading season looks
• Increases in base labour rates for than ever, consumers are being put off in dire. The slow-boiling frog is almost
retail workers. droves by retailers that lack imagination, completely cooked.
creativity, clear purpose, a sense of
Much like the slow boiling frog, Australian
belonging, and powerful storytelling.
retail brands seemed unaware that the
Pair that with record household debt,
heat had been turned up to high and they
stagnating wages and job growth, and
were slowly being boiled in a soup of their 1
ABC News, (November 4 2019) Retail slumps to ‘weakest’
increasing economic uncertainty, what we level since 1990s recession as tax cuts fail to stimulate
own apathy.
found was a perfect storm of retail failure. consumer spending. – https://www.abc.net.au/news/2019-
11-04/retail-sales-disappoint-tax-cuts-rba-fail-to-boost-
spending/11668912
4
Australian Be ta i l S u rv e y
De c 2 0 1 9
IN DARKNESS,
THERE IS HOPE.
Retail has a right to feel pessimistic. It’s
harder than ever to inspire a sense of
devotion to a brand when consumers
are lacking in confidence. Earlier in
2019, retail spending stagnated. It’s
now going backwards, dropping 0.2 per
cent over the past 12 months - the first
drop since the recession of 1991.2 No
category is safe. From newsagents to
global fashion brands to local chicken
shops, everyone is feeling it.
But it’s not all doom and gloom. There
are retail brands shining bright in these
trying times.
These are the ones who have reinvented
the retail experience, signalling a clear
and strongly-held belief that invites
devoted belonging and ultimately drives
purchase behaviour. This relationship —
which we call the Be Brands approach
of Belief / Belonging / Behaviour — is
the driving force behind the best retail
brands; ‘Betailers’.
These Betailers understand that retail
is primarily about theatre, delivered
by people who are highly engaged and
committed purpose and belief. Selling
then is merely a byproduct.
With retail slowly sinking deeper into
distress, our mission with this timely
RETAIL SALES BY CATEGORY study is clear: identify and celebrate
AUGUST 2019, SE ASONALLY ADJUSTED %MO M
the best Australian Betailers and gain
CL OTHIN G & SOFT GOODS 1.8% practical guidance from them on how to
DEPARTMENT STORE S 1.2 % claw our way out of this retail quagmire.
LIQ UOR 1.2 %
The fight is not over yet.
EL ECTRI CAL GOODS 0.7 %
HOUSEHO LD GOODS
FOOD
0.3%
0.3%
RETAIL IS NOT DEAD, YOU
SUP ERMARKE T & GROCE Y 0.1% JUST NEED TO BELIEVE.
HARDWARE, B UIL DIN G & GARDE N -0.1%
CAF ES, RESTAURAN TS & TAKE AWAY -0.4 %
N EWSPAP E R & BOOK -5.5%
-6% -5% -4% -3% -2% -1 % 0% 1% 2%
S ourc e : Re fini t y D at ast re am , ABS, ABC Ne ws
2
Ibid
5
A u s t r a l i a n B et a i l S u r v e y BE
BE
Dec 2019
BE
BE
WHERE BELIEF
MEETS EXPERIENCE B
B
B
B
6
B
E BRAND S & B E TA I L I N G .
E BRA N D S & B E T A I L I N G . Australian Be ta i l S u rv e y
De c 2 0 1 9
E BRTAN D S & B E TA I L I N G .
A I L I N G .
Over its 16 years, Be Brands has proven to be a
T
he Be Brands philosophy was created
& B E
powerful blueprint for customer-centric businesses,
S
in 2003 by brand strategist and cultural
E BRAN D
anthropologist, Simon Hammond, to enable utilising popular culture observations, consumer
businesses to better understand what they behaviour insights and over 30 years of practical
must be for the culture they seek to serve. experience working with top brands to suggest a
simple but bold new way for creating great brands
The Be Brand philosophy and methodology is of deep emotional resonance. The Be Brands
ultimately about articulating the reason why a brand
G
methodology is now taught in select universities and
T A I L I N
or organisation exists. It adds a potent preface
E
throughout dozens of business around the world.
S & B
to what you do, and tells an emotive story of why
BE BRA N D
you do it. It ensures a brand is more aligned to the If Be Branding starts with a business’ core belief, then
emotive drivers of its consumers, tapping into their Betail is where that belief and customer experience
most basic fears, frustrations, and desires. inevitably intersect. It’s here that the brand and
everything underpinning it, are put on trial by
As such, successful Be Brands create an emotive consumers. True Be Brands become a destination,
story of what a brand must be for its customers
G
and the best of the best — Apple, The Body Shop,
A I L I N
in order to form a deep connection and sense
E T
Nespresso, Lush — understand that ultimately,
& B
of belonging. Be Brands is not surface level. By
S
what their retail experience needs to be is a potent
BE BRAN D
understanding what your business must be for alchemical mix of attraction through brand theatre.
its customers, you can power sales forces, unite
cultures and focus product development.
BE BR A N D S & B E T A I L I N G
BE BRA N D S & B E T A I L I N G
BE BRA N D S & B E T A I L I N G 7
A u s t r a l i a n B et a i l S u r v e y
Dec 2019
OUR 4 P’S
OF BETAIL. THE FOUR P’S OF B E TAIL EACH
CONTAIN A SUB -SE T OF THREE
CRITERIA THAT MAKE UP THE W HOLE .
POSSIBILITY
BELIEF /10 P T S CONS IS T EN CY / 1 0 PT S SEDUCTION / 5 PT S TOTAL /
All brands on our shortlist had The ability to integrate Seduction is the x-factor
to have a semblance of a Belief the Belief into the in-store pulling passerbys into a great
or purpose. This measure aims experience and replicate this retail experience, inexplicably
to separate those that just
talk the talk from those that
actually walk the walk. How do
over multiple outlets takes
commitment and a clarity
of message.
drawn to an interesting space
and allured by things they
never knew they needed or
25
PO INT S
they live it? How well does their wanted. This subconscious
belief resonate to potential seduction is a lynchpin of
customers? How is it qualified? traditional retail experience
that sets it apart from the
more deliberate intent of
online shopping.
PHYSICALITY
LOOK /10 P T S F EE L / 1 0 PTS DESTINATION / 5 PT S TOTAL /
The physical representation of As a measure of overall sensory The presence of purpose is the
the brand through the in-store engagement, this measure difference between a place and
experience. Is it distinctive or considers intricate design a destination. This measure
25
unique? Ownable? Does it look details and textures, music, looks at how Betailers extend
the way the brand feels? lighting, aromas and general the retail experience beyond
ambience (playfulness, merely selling their product.
anticipation, intimacy,
PO INT S
craftsmanship etc).
8
Australian Be ta i l S u rv e y
De c 2 0 1 9
PERFORMANCE
PAS S I O N /10 P T S T HE AT R E / 1 0 PT S STORYTELLING / 5 PT S TOTAL /
The beating heart of a Betailer All stores must utilise retail This comes down to how well
is its staff. During the survey, theatre to some degree, but staff can ‘perform’ the brand
staff at each store were asked the truly great Betailers go story and communicate the
to speak spontaneously about
the brand they represent, and
scored based on passion and
above and beyond to create
a sense of belonging through
the in-store experience
brand’s belief. We looked for
articulation and consistency. 25
POINT S
trustworthiness. they provide.
PRODUCT
P R E S E N TAT ION / 1 0 PTS I MPACT / 1 0 P TS PRIDE / 5 PT S TOTAL /
What does the product display Flowing on naturally from This final measure looks at
say about the brand and its self Presentation, Impact looks the shareability of a product
worth? Is it put on a pedestal? at how product presentation or brand. Great brands create
25
Is it an invitation to play and impacts your perception of proud tribes of consumers who
discover? Mass-produced the products and the brand become their most valuable
or personal? more holistically. expression of the brand
Belief. Their retail outlets then
POINT S
become temples for these
zealots to congregate.
9
A u s t r a l i a n B et a i l S u r v e y
Dec 2019
FILTERS
OUR 1. AUSTRALIAN FOUNDED
The core of this study - Australian made.
2. TRADITIONAL RETAILER
Filters out eateries and other specialty
METHOD
categories.
3. BELIEF LED
Retailers without an identifiable belief
could not be accurately assessed.
4. TOP LEVEL
Limits the shortlist to independent
OLOGY
retailers or retailers that act as hero
brands for their umbrella companies.
5. MINIMUM 3 STORES
Eliminates boutique retailers and those
just starting their retail journeys.
AWARDS
To finalise the shortlist of 50 brands, we ran 300 retailers through 5 elimination
criteria. We then measured those 50 brands against our 12 criteria for assessment,
ultimately identifying 10 retail beacons and 5 bogged brands. TOP 10
Beyond these 50, there was one other brand we wanted to highlight - the worst of
WHO’S RISING ABOVE
the worst.
TOP 5
WHO’S BOGGED
SWAMP MONSTER
THE WORST OF THE WORST
1010
Australian Be ta i l S u rv e y
De c 2 0 1 9
TOP BETAILERS
OF 2019
11A u s t r a l i a n B et a i l S u r v e y
Dec 2019
#BLOCH10
Standing inside a Bloch store makes one showing a consistency and commitment
feel as though they could peel away the to their Belief. Appointments for pointe
merchandise to reveal a fully functional shoes can go for as long as 40 minutes.
dance studio. That’s their true strength; At Bloch, “the most comfortable dance
living and breathing dance. shoes in the world” is something not to be
rushed.
Balance beams line floor to ceiling
mirrors and hardwood floors creak quietly
underfoot as knowledgeable staff flit from BY THE NUM BERS:
shelf to rail helping dancers find their
perfect fit. Bloch comes to life with their
DESPI TE THEI R NI CHE
in-store experience, true principal artists MARKE T BLOCH
of retail theatre.
MAI NTAI NS A G LOBAL
Bloch thrive in a niche market by making
themselves a rite of passage for young PRESENCE, WI TH STORE S
dancers, delivering on reputable products
and personalised service.
I N LONDON, PARI S
Despite having little to no major
AND WARSAW.
competitors in the bricks and mortar
landscape, Bloch continues to strive and
innovate rather than rest on their laurels,
TOTAL
P HYS I C A L I T Y PER F OR MA N CE P R ODU CT PO S S IB ILITY
Look 6 Passion 8 Presentation 5 Belief 7
70
Feel
Destination
7
2
Theatre
Storytelling
10
4
Impact
Pride
7
3
Consistency
Seduction
8
3 SCORE POINTS
12Australian Be ta i l S u rv e y
De c 2 0 1 9
9
Kookai are the only traditional clothing But this strong brand image does come
brand to break into the top 10, bucking with a downside. For some, this brand can
the trend of apathetic apparel retailers. be alienating, perhaps even hostile. Kookai
#KOOKAI
And it’s certainly not by chance. Kookai knows who they are and are unapologetic
is a compelling case study in finding your to those who don’t fit their mould. But for
demographic and fostering a community those who do fit, Kookai becomes their go-
of belonging. to place for every occasion. Their zealots
stand with them through thick and thin,
Upon entering one of their stores, offering their loyalty and a sizeable chunk
you’re enveloped by floral perfume that of their disposable incomes (Kookai isn’t
welcomes you into the world of a Kookai cheap).
woman. The interior would not be out of
place in an issue of Real Living - bright,
open and minimalistic, tied together with BY THE NUM BER S :
soft pink accents and marble textures.
The employees - dressed head-to-toe in
I N 2017 , KOOKAI
Kookai clothing, shoes, and accessories AU STRALI A ACQU I R E D
- are impeccably presented walking
mannequins. THEI R EU ROPEAN
Racks of clothing are satisfyingly colour NAMESAKE, FORMI N G
coordinated, podiums of jewelry are
strategically scattered, and a phalanx of
A FASHI ON EMPI RE
staff stand by, ready to meet any service SPANNI NG 200 STO R E S
requirement. In this sense, the service
level was a stand-out. Shoppers felt as AND THREE CONTI N E N T S .
if they were always looked after as they
explored the various nooks of the store.
TOTAL
P H YS I C A L I T Y P ER F OR MA N CE P R ODUC T PO S S IB ILITY
Look 10 Passion 5 Presentation 9 Belief 4
71
Feel
Destination
6
4
Theatre
Storytelling
7
2
Impact
Pride
9
5
Consistency
Seduction
6
4 SCORE POINTS
13A u s t r a l i a n B et a i l S u r v e y
Dec 2019
#8
Melbourne’s La Manna and Sons are one supermarket contemporaries, and the
of the smaller retailers to make the list. joyous energy of their staff is infectious. It’s
With a greengrocer in South Yarra, two this atmosphere that separates LaManna
café’s, a delicatessen and a supermarket from the rest. It’s the hustle and bustle of
in Essendon Fields, they may be little, but a weekend market in retail form. Brilliant.
they’re certainly mighty.
The LaManna brand is all about family and BY THE NUM BERS:
community, and their retail expression
exudes these elements in spades.
2020 WI LL SEE LAMANN A
Customers are routinely greeted by & SONS CONTI NU E TO
smiling staff, not because it’s their job
description, but because of their culture. EXPAND THEI R SOU TH
LAMANNA
It’s something you rarely see that at
major supermarket chains like Coles or
YARRA G REENG ROCER
Woolworths. If you’re lucky, you might WI TH AN ADJACENT
even spot the titular LaManna and his
DELI CATESSEN, AS
& SONS
sons at their South Yarra greengrocer.
They’re up at the crack of dawn every day
to pick fruit and veg and are always happy
WELL AS CAFES I N
to have a chat. CREMORNE AND
Walking into any of their stores is a
sensory experience. Their towering fresh
MELBOU RNE’ S NORTH.
food displays go above and beyond their
TOTAL
P HYS I C A L I T Y PER F OR MA N CE P R ODU CT PO S S IB ILITY
Look 8 Passion 7 Presentation 7 Belief 8
76
Feel
Destination
8
5
Theatre
Storytelling
6
4
Impact
Pride
7
3
Consistency
Seduction
8
5 SCORE POINTS
14Australian Be ta i l S u rv e y
De c 2 0 1 9
#7BROMLEY & CO.
When people think about buying art,
they think of auctions and art galleries,
of highly-wound art collectors who judge
BY T HE NUM BERS:
2017 SAW THE LAU NCH OF
your tastes against their own. Bromley
and Co. completely upend this attitude. BRO MLEY AND CO’ S FI RST
Since making the transition from selling PERMANENT DI SPLAY
one artist’s art (David Bromley), Bromley
and Co. has become a curator and retailer O UTS I DE OF VI CTORI A -
of a multitude of artists. And in doing so,
they’re making art accessible to a market
‘THE BROMLEY ROOM #2’
the art world seems to have ignored for IN B RI SBANE.
many years.
Notably, Bromley and Co. have a strong
and recognisable belief. In their staff’s
own words, they’re committed to
“creating an art gallery for the people.”
Almost everything about the retail
experience is right: strong message,
eclectic store design, and staff that are
both knowledgeable and passionate
about what they do and where they do it.
For those who aren’t familiar with similar
retail spaces, Bromley and Co.’s over the
top displays might be more overwhelming
than inspiring. But for those who truly
belong, there’s charm in the chaos. One
could easily spend hours getting lost in
the whimsy and splendour of Bromley
and Co. stores, which buck the stuffy art-
world stereotypes with their low-concept,
maximum-impact retail stores.
TOTAL
P H YS I C A L I T Y P ER F OR MA N CE P R ODU C T PO S S IB ILITY
Look 7 Passion 8 Presentation 6 Belief 9
80
Feel
Destination
8
4
Theatre
Storytelling
7
5
Impact
Pride
7
4
Consistency
Seduction
10
5 SCORE POINTS
15A u s t r a l i a n B et a i l S u r v e y
Dec 2019
#6
R.M.
WILLIAMS R.M. Williams is a brand that cues
thoughts of leather, the outback, the crack
of a stockman’s whip and Hugh Jackman
more than 400 stores in Australia alone,
the potential for variation in the customer
experience is higher than the smaller
in Baz Luhrman’s ‘Australia’. stores on the list and was evident across
various locations visited.
Customers are greeted by large portraits
of the man himself that gaze imperiously On paper, R.M Williams is simply an apparel
as they wander through the space. Stylish store, but their powerful storytelling and
wood panelling, perfectly polished floors immersive in-store experience sets them
and the open plan layout of a designer apart and cements their place as a truly
boutique work together to marry the iconic Australian brand.
brand’s rugged Australian identity with its
premium quality and price point.
BY THE NUM BERS:
Beyond the space itself, the people and
the products truly feel like they belong.
WI TH CONTI NU ED G LOBAL
After multiple visits the one thing that EXPANSI ON, EARNI NG S
consistently stood out was the ability of
staff members to recite brand stories and ARE EXP ECTED TO TRI PLE
anecdotes about almost every product. 3
From their apparel to their iconic boots,
BY 2024 .
R.M. Williams is packed with personality,
and the staff clearly love it.
3
Australian Financial Review, (October 10th 2019), RM
The only area for improvement identified Williams earnings to more than tripple by 2024, bidders told
- https://www.afr.com/street-talk/rm-williams-earnings-to-more-
is consistency of service quality. With than-triple-by-2024-bidders-told-20191010-p52zen
TOTAL
P HYS I C A L I T Y PER F OR MA N CE P R ODU CT PO S S IB ILITY
Look 7 Passion 10 Presentation 8 Belief 7
81
Feel
Destination
10
4
Theatre
Storytelling
6
5
Impact
Pride
9
4
Consistency
Seduction
9
2 SCORE POINTS
16Australian Be ta i l S u rv e y
De c 2 0 1 9
#5 HAIGH’S
CHOCOLATE
Haigh’s Chocolate is ‘Willy-Wonka- who offers a sample of their product, you have a stand-out brand that nails the
meets-Sovereign-Hill’ – and the effect is pamphlets for chocolate factory tours retail experience.
utterly delightful. are readily available, and the abundance
Much like R.M. Williams, Haigh’s lean
of staff means there’s always someone
to talk you through their large selection
BY THE NUM BERS :
into their Australian heritage to form their
brand identity, but a fork in the road comes
of sweets. I N 2018 HAI G H’ S I N V E S T E D
in the form of retail theatre. It’s hard to say The iconic gold-wrapped chocolate $15M I NTO OP ENI N G T H E
who does physicality better between the frogs adorn the shelves and beautiful
two brands, but Haigh’s goes above and handcrafted chocolates taunt you through LARG EST CHOCOLATE
beyond when it comes to performance. glass casings. The chocolates are the real
stars of the show — and Haigh’s know it.
FACTORY I N THE
4
The gold rush era touches are charming
and the chocolate itself is quality, but Their store, staff and products are all
SOU THERN HEMI SPH E R E .
where Haigh’s shines is in their ability to top tier, and their ‘family owned’ belief
put on a great show and give a memorable and history is compelling. Couple that 4
ABC News, (March 22 2018), Haigh’s Chocolates opens
new factory, hopes to expand around Australia
retail experience. Every customer is with their community outreach and - https://www.abc.net.au/news/2018-03-22/haighs-chocolate-
greeted by a smiling staff member collaboration with Indigenous artists and bucking-the-trend/9576738
TOTAL
PH YS I C A L I T Y P ER F OR MA N CE P R ODUC T PO S S IB ILITY
Look 8 Passion 10 Presentation 8 Belief 7
82
Feel
Destination
8
5
Theatre
Storytelling
9
5
Impact
Pride
7
2
Consistency
Seduction
9
4 SCORE POINTS
17A u s t r a l i a n B et a i l S u r v e y
Dec 2019
THE
FANTASTIC
FOUR
These brands nail all 4 P’s, and for that we’re calling them
The Fantastic Four of Australian Betail. These top four are
also incredibly close in score, a league above the other six
in the top 10.
18DE C 2 0 1 9
#4
T2 have always been strong on what lies within. Friendly employees are
Presentation, a commitment that has always ready to hand out freshly brewed
helped them become the dominant tea tea and chat through their various notes
purveyor in Australia. But what makes and benefits. It’s one of those spaces you
them especially noteworthy is just how just want to pop into every time you’re at
knowledgeable and enthusiastic their the shops.
staff are.
T2 pioneered the emergence of BY THE NUM BER S :
T2
experience-led retail in the 2000’s and in
the years since they’ve remained true to
2017 SAW T2’ S FI R S T
themselves and impossibly fresh, defying EXPANSI ON I NTO AS IA
all the retail odds. Both tea aficionados
and those who never touch the stuff were WI TH A NEW STORE IN
convinced to buy a box during their visits
to T2. That’s a remarkable testament to
SI NG AP ORE. I N 201 5
the in-store experience. THERE WERE OVER 7 0 T 2
These guys have the whole package. As STORES WORLDWI DE . BY
soon as you walk in the door, the delicious
aroma of tea wafts over you while rainbow 2018 THERE WERE JU S T
walls of perfectly stacked boxes of exotic
tea blends invite you to come and discover
U NDER 100.
TOTAL
P H YS I C A L I T Y P ER F OR MA N CE P R ODUC T PO S S IB ILITY
Look 8 Passion 9 Presentation 10 Belief 10
87
Feel
Destination
9
4
Theatre
Storytelling
9
4
Impact
Pride
5
5
Consistency
Seduction
8
6 SCORE POINTS
19A u s t r a l i a n B et a i l S u r v e y
Dec 2019
#3
Aesop imbues every one of their retail Despite being more than 30 years old and
stores with the striking architectural having more than 200 stores, Aesop keeps
elements, attention to detail and service a humble facade. They know that the
quality that you might expect from a world doesn’t need another big company
concept or pop-up store. It’s a feat that’s - it needs symbols of change to pave the
as impressive as it is unique, and that’s way to a better way of living.
why Aesop belongs in the top three.
The one element that we found to be
Aesop is the whole package as a Betailer, hit-and-miss was the level of knowledge
maintaining its consistency across each of exhibited by staff, though they were
its stores. What sets it apart is its design friendly and happy to help in every
philosophy, which radiates personality instance. Head to head with its closest
AESOP
and belief. The beautiful simplicity of contemporary T2, Aesop loses out in
Aesop stores is striking. The design of Performance and Possibility, but takes
each one is tailored to its location through the win when it comes Physicality
subtle unique elements, and filled with and Product.
perfectly placed jars of lotions and potions
leave you feeling like you’re in some kind
of ultra-chic apothecary.
BY THE NUM BERS:
It’s clear that every Aesop store puts
AESOP ARE CONTI NU I N G
culture first - and that’s how they create THEI R U NSTOP PABLE
such a gripping retail experience. Through
the creation of a sensory destination like G ROWTH, OPENI NG 19 N E W
no other, Aesop force customers to snap
out of their haze and take notice.
STORES I N 2018 ALONE.
TOTAL
P HYS I C A L I T Y P ER F OR MA N CE P R ODU CT PO S S IB ILITY
Look 10 Passion 7 Presentation 10 Belief 8
88
Feel
Destination
9
5
Theatre
Storytelling
8
4
Impact
Pride
10
5
Consistency
Seduction
7
5 SCORE POINTS
20Australian Be ta i l S u rv e y
De c 2 0 1 9
#2 GEWÜRZHAUS
You may not have heard of Gewürzhaus
Spice Merchants, but they stand shoulder
aromatic spices from every corner of the
world, giving you the same feeling as an
to shoulder with the best of the best. afternoon spent at your nan’s house —
Gewürzhaus customers step off the if your nan had seriously upgraded her
streets of Melbourne and into a traditional spice rack.
Turkish bazaar, enveloped immediately by
colour and culture. Anchored by the Belief Before this year’s retail survey we hadn’t
that cooking should come from the home heard of Gewürzhaus, but they’re one of
and the heart, Gewürzhaus delivers a truly our favourite discoveries. They don’t have
immersive retail experience. many stores yet, but they’ve been growing
quickly since their 2010 launch. Keep
Customers are invited to scoop and bag your eye on these guys — your pantry and
their own spices. It’s a practice that’s your tastebuds will thank you.
not only fun, but is driven by the belief
that cooking is an important and intimate
experience, best improved by getting to
BY T HE NUM BERS:
know and smell your spices before using GEWÜ RZHAU S ARE A
them.
RISIN G STAR WI TH 3 NEW
As you’d expect from second spot,
Gewürzhaus Spice Merchant dominates STO RES OP ENI NG ACROSS
across all 4 P’s, with especially strong
showings in the Performance, Product
M EL BOU RNE I N THE LAST
and Physicality sections, all due to their 4 YEARS, WHI LE ALSO
well executed and refreshingly unique
stores. EX PANDI NG I NTO SYDNEY
Each store is warm and homely; tea is A ND CANBERRA.
always brewing, and the quiet environment
is a welcome change from the loud
pop music that blares from many other
retailers. The walls are chock-a-block with
TOTAL
PH YS I C A L P ER F OR MA N CE P R ODUC T PO S S IB ILITY
Look 9 Passion 10 Presentation 9 Belief 7
91
Feel
Destination
10
5
Theatre
Storytelling
10
5
Impact
Pride
8
3
Consistency
Seduction
9
6 SCORE POINTS
21A u s t r a l i a n B et a i l S u r v e y Dec 2019 AND THE WINNER IS… DEUS EX MACHINA # 1 22
Australian Be ta i l S u rv e y
De c 2 0 1 9
Try as we might, we simply can’t fault Deus
Ex Machina on their retail experience.
At its simplest, Deus is an apparel
company. But as a lifestyle brand that
celebrates the speed, craftsmanship and
excitement of motorcycle culture, it’s
simply unparalleled. The amazing thing
about Deus is that each of their stores
possess a distinct identity anchored by
place, yet maintain a consistency that
allows them to form a global tribe of
brand zealots.
Scattered around the world, each flagship
is a temple of worship to the motorbike
culture that Deus seeks to serve. Polished
concrete floors and industrial elements
create spaces that feel more like
motorcycle garages than retail spaces.
Surfboards and Deus apparel fill the
room, complemented by photography toe in personality. The staff and customers Deus is this year’s ultimate Betailer
and street-style illustrations of muscle look like they could easily be friends who because it embodies all Four P’s. Their
cars and motorbikes that adorn the walls. have come to hang out, both equally Possibility score completely outshines
Where the concrete gives way to wood invested in Deus tribalism. Their sense of all other retailers in our study, while their
you’ll find more clothes and in some belonging and Deus’ consistency back up Physicality score sits at the top with the
instances, a signature Deus café where the behaviour of the community who live likes of Aesop. It’s clear that the Deus staff
customers spend hours just enjoying and die by the Deus creed. love their jobs and regularly score highly
the atmosphere. in Performance, while their Products are
Deus believes there’s no ‘right way’ to do coveted by Deus fans all over the world.
Each flagship stores adds unique individualism, and lets the world know
elements that speak to their location that all are welcome under their roof. With If you’re looking for an example of retail
and history, but the rustic feel and biker this belief flowing to their very core, every done right, look no further than Deus Ex
heart are consistent. The Harajuku store Deus shop/experience tells you all you Machina.
is mystical, the Canggu store is spiritual, need to know about their brand without
the LA store is oh-so LA — but every store
remains Deus at heart.
ever really saying a word.
BY THE NUM BER S :
Originally founded in Australia, Deus now
In addition to the Camperdown flagship,
Deus also has smaller retail locations in
BACK I N MAY DEU S
has more stores worldwide than back
at home, but it’s the Camperdown store
Penrith, Manly, Byron Bay and Warringah U NVEI LED PLANS FOR
Mall. Even without large warehouse
in Sydney that captures the heart of spaces and in-store cafes to support A SECOND AU STRAL IAN
Australian Deus-heads. The Camperdown them, each of these stores still manages
flagship is everything a retailer aspires to to embody the spirit and heart of one of
FLAG SHI P I N
be; a place of pilgrimage doused head to the flagships. FREMANTLE, WA.
TOTAL
P H YS I C A L I T Y P ER F OR MA N CE P R ODU C T PO S S IB ILITY
Look 10 Passion 9 Presentation 7 Belief 10
95
Feel
Destination
10
5
Theatre
Storytelling
8
5
Impact
Pride
10
6
Consistency
Seduction
10
5 SCORE POINTS
23A u s t r a l i a n B et a i l S u r v e y
Dec 2019
BOGGED BRANDS
O U R T OP T E N HAS MA N Y
R E TA I L T R I U M P HS , BUT
LY I N G J U S T O UT OF OUR
TO P T E N A R E S E VER A L
BR AND S W H O DI DN’T
Q U I T E M A K E T HE CUT.
For one reason or another each of these
five brands fall by the wayside. Some
narrowly miss their mark and others
dramatically misfire. Here’s a handful
of brands that show huge potential, but
stumbled at the finish line.
CRUMPLER
In years gone by, Crumpler has been It seems to us that Crumpler hasn’t
a consistently powerful retailer with kept theirs. Soulless industrial stores
a belief focused on finding your and a shiny new mascot (brutally
own way. It was strong and simple killing off the old iconic dreadlocks)
and always landed them a place as both work wonders to sterilise a once
one of Australia’s leading retailers. vibrant brand. When asked what
Unfortunately, a disastrous rebrand Crumpler was about, staff could only
has knocked Crumpler from top tier to offer their thoughts on what Crumpler
bottom rung. used to be while sheepishly admitting
that they’re no longer sure. This was
Don’t get us wrong, change isn’t consistent in every store we visited.
always a bad thing. Quite the contrary.
Boost, NAB, Woolworths and many Staff who are confused about the
more have successfully undertaken identity of the brand they sell is a far
rebranding measures in an effort to cry from the effortlessly personable
keep up with the tides of times while Crumpler of the past. Unless drastic
maintaining their core brand identity. measures are taken, it could soon be
too late to turn back.
24Australian Be ta i l S u rv e y
De c 2 0 1 9
BAILEY NELSON
After a strong performance in the 2015 displays for a variety of glasses, textured This lack of consistency throughout
Retail Brand Survey, we expected Bailey floors and thematic eye-test decorations their retail experience allowed a few
Nelson to turn out a similarly impressive make for an optical experience that’s disappointing stores to dim the light of a
score in the 2019 survey. Unfortunately, more chic than you might expect. Back once great brand, earning Bailey Nelson a
this was far from the case. in 2015 this aesthetic environment was spot in 2019’s Bogged Brands.
enriched by brilliant staff and a powerful
Back in 2015, Bailey Nelson was a belief that was outwardly evident.
Bondi Beach upstart with only a few
flagship stores. In the years since, they’ve So, where did they go wrong?
amassed more than 40 stores across
Australia as well as locations in London, Some stores are so far removed from the
Canada and New Zealand. We’re sad to presentation of the flagships that one
say their quality and attention to detail could be forgiven for wondering if they
has not kept up with this massive scaling had mistakenly wandered into OPSM
of their retail presence. rather than Bailey Nelson. Customer
service was virtually non-existent, bare
Those who have visited a flagship Bailey shelves begged to be restocked, and staff
Nelson store know that their spaces offered customers little more than an
are a pleasure to be in, something unapologetic ‘take it or leave it’ attitude.
other eyewear retailers should aspire
to. Beautiful wood paneling, shrine-like
LORNA JANE JURLIQUE KOKO BLACK
Lorna Jane perform well in a number Jurlique have the Presentation, they Much like Jurlique, Koko Black sport
of areas. They have an avidly loyal have the Possibility, and they have the full package in all but one spot,
following, a great belief, and a strong the Product. What they don’t have but this time it’s their possibility that’s
brand presence in the retail landscape. is the Performance. Compared to a lacking. Koko Black lean too heavily on
But unfortunately Lorna Jane hasn’t contemporary like Aesop, the cracks their premium positioning. Yes, they
quite nailed the physicality of retail. in Jurlique’s facade become obvious. have good performance, but their core
Instead of taking cues from some What’s needed here is more theatre and beliefs and their x-factor is lacking. You
of our best experience-led retailers, more passion. know what you’re going to get when
Lorna Jane still gives the experience of you visit Koko Black, but a belief-driven
a traditional clothing retailer, offering experience isn’t part of the offering.
little more than a crisp white visade
with industrial touches in most of their
stores. A little extra effort could turn
this into a destination that invites you to
spend a little extra time discovering the
brand beyond the racks.
25A u s t r a l i a n B et a i l S u r v e y
Dec 2019
AS WE COMPLE TED THE FIELDWORK FOR THIS STUDY,
S EVER A L DA MNING TRENDS EMERGED AMONG OUR
S HORT LIS T ED BRANDS. W E SAW RE TAILERS MAKING THE
S A ME MIS TA K E S TIME AND TIME AGAIN ACROSS EV ERY
CAT E G ORY OF ASSESSMENT.
A N D S O, T HE S EV EN DEADLY SINS OF RE TAIL W ERE B ORN .
1 2 3
APATHY NONDESCRIPT INSECURITY
THE SEVEN DEADLY
The strength of bricks and The white bread of the retail If you don’t know who you
mortar retail over online world. Brands that exhibit are - how can the consumer
shopping is personal this sin have a tendency guess? This sin manifests
SINS OF RETAIL
interaction. So, when to make you wonder if itself in a number of different
the exchange provided they ever even talked to a ways. When a retailer’s
is more painful than no designer or merchandiser. self image changes with
interaction whatsoever, There are two camps that the tides and no sane
something is very wrong. sinners tend to fall into: the person could be expected
When an employer is more ABC stores of old (may they to keep track of their ever
concerned about what rest in peace) and brands changing positioning, that’s
goes in the till than what like OPSM - painfully dour insecurity. The easiest and
they’re contributing to and unimaginative. The fastest way to spot this
the world, they become a other camp is where JB sin is near constant sales
wellspring of indifference. Hi-Fi lives. There’s clearly and promotions.
Ultimately this infects the an atmosphere of some
staff who act as the face kind, but the outlet style
of the brand, and what layout forces customers
the world sees is apathy. to play product hide-
When your staff don’t and-seek, a practice
care about the experience which is exhausting and
they’re providing, why off putting, especially
should your customers those who are new to the
care to endure it? product categories.
26Australian Be ta i l S u rv e y
De c 2 0 1 9
C O MMI T ONE OF THESE
SIN S AND YOU’LL F IND YOURSELF
IN R E TA IL P URGATORY
4 5 6 7
DECEPTION (MERCHANDISE) TUNNEL GREED
MANIA VISION
All retailers use psychology Merchandising is the art Price is an important Greed is a strong word,
to influence customers, of product layout and and unavoidable part of but what else do you say
but some cross the line as a retail concept it fits retail. But where can you about retailers who actively
into dangerous territory directly into our P of the get focusing on a price- engage in predatory
of deception. No matter same name. When done led retail experience and behaviour to improve their
how small or large the well it can explain the nothing else? Not on our bottom line? Only the worst
deception, when a brand in one glance while list. We’ve talked at length of the worst showcase
customer is put out once, leading customers with on the folly of belief- this sin, and we can think
they likely won’t forget it. visual cues. But when done deprived retailers, and this of only one truly greedy
This sin rears its ugly head poorly, merchandising can sin is an extension of that. example. Read on to find
when an item that appears confuse and disorient. The ‘look-how-cheap-we- out which retailer is in need
fully stocked on the If your eyes have ever are’ sales point works for of repentance.
shelves is in reality, sold been visually assaulted some, but you’ll be edged
out. This can also extend to in a store, or you’ve ever out by the competition
overpricing and behaviour wondered “Why the hell do eventually.
designed to make money they even sell this?!”, well
off the ignorant. that’s merchandise mania.
27A u s t r a l i a n B et a i l S u r v e y
Dec 2019
THE
“ S T O C KS F E L L T O T HE “EB G AM ES HALT D IVID EN D S “N E T IN COM E IS A M ERE 24 %
L OW E S T PO I N T I N 1 6 Y E ARS ” D UE T O D EC LIN E IN S ALES ” OF T HE YEAR BEFORE”
– https://www.channelnews.com.au/eb-games-owner-suffers-major-revenue-loss/
SWAMP MONSTER
WE ’V E F I N A L LY COME
TO TH E S OU R C E OF T HI S
It begins as soon as you walk in the door.
Customers are greeted with apathy and
poor customer service, cluttered displays
strength that only seeks to increase their
desirability.
And we still haven’t talked about the worst
that seem purposefully confusing, items
R E TA I L S T I N K . on shelves with no indication of actual part of EB’s retail experience - customer
product availability and an overwhelming membership. EB retailers practice
Who are the ones dragging down feeling of discount desperation. predatory behaviour when it comes to
Australian retail and drowning out trade-ins and EB World memberships.
experience-led retail with their Infuriatingly, products you’re looking
characterless oversaturation? for are always “in another store,” while EB offers discounts or gift cards in order
things that no-one would want and to severely under-pay for trade-ins and
From the much-maligned Telstra, to the don’t appear to belong are available make a huge profit off of pre-owned
very vanilla Myers and David Jones, there in abundance. Pop-culture figurines, sales (it’s actually where a large portion
are many ‘Swamp Monsters’ populating miscellaneous merchandise, and several of profit comes from). These programs
this bog, but the worst of the worst has got editions of Monopoly litter shelves that are lead to thousands of customers making
to be... somehow simultaneously cluttered and pocket change while EB resells for a huge
understocked. There’s no consistency markup. Why? Because their customers
EB GAMES in the way product is displayed, or even
between the stores themselves.
don’t know any better, and they’re only
too happy to take advantage.
It might be rough to call out one The best we can say for EB Games is
Perhaps EB’s most blatant offence is
retailer above all others, but EB Games they’re consistent at being a poor example
the never-ending sale banners that
exemplifies all seven of our retail sins. of the retail experience.
plaster every surface and hang down to
So, to set Australian retail back on course
obstruct vision and movement. Over the
once again, an example must be made. Retailers take note. As long as you’re
last decade these banners have become
doing the opposite of everything EB
If you’ve never shopped at EB Games, the identifying feature of an EB Games
Games do, you’re doing ok.
well, you’re one of the lucky ones. Physical store. Constant discounts are a sign of
media is slowly dying, and as a purveyor desperation, and overpromotion makes it
video games, EB Games is top of the list all the more off putting. Brands with strong
of endangered retailers. Yet much like identities rarely offer discounts, and in
drowning in quicksand, the more EB has the case of premium brands like Apple,
struggled, the quicker it’s sunk. maintaining their price point is a sign of
TOTAL
P HYS I C A L I T Y P ER F OR MA N CE P R ODU CT PO S S IB ILITY
Look 0 Passion 0 Presentation 1 Belief 0
6
Feel
Destination
1
2
Theatre
Storytelling
0
1
Impact
Pride
0
0
Consistency
Seduction
0
1 SCORE POINTS
28THE
POSSIBIL ITY PH YSI C AL I TY PE RF ORMAN C E PRO DU C T
Australian Be ta i l S u rv e y
De c 2 0 1 9
FINAL 50
Presentation
Consistency
Destination
Storytelling
Seduction
Passion
Theatre
Impact
Belief
Pride
Total
Look
Feel
Aesop 8 7 5 10 9 5 7 8 4 10 10 5 88
Alice Mccall 3 3 1 7 2 2 2 3 1 8 10 5 47
Bailey Nelson 9 6 4 8 5 3 4 5 3 6 7 4 64
Betts 7 6 3 5 3 1 4 6 4 7 8 3 57
Black Hearts and Sparrow 7 7 4 7 7 3 6 5 3 7 7 3 66
Bloch 7 8 3 6 7 2 8 10 4 5 7 3 70
Bonds 6 4 2 3 5 2 5 5 2 4 4 2 44
Bromley and Co 9 10 5 7 8 4 8 7 5 6 6 3 78
Bunnings 3 7 5 6 9 5 7 9 2 4 3 1 61
Camilla 6 5 4 8 6 3 6 7 3 7 6 2 63
Cotton On 8 3 3 5 3 2 3 3 2 2 2 1 37
Country Road 2 5 3 5 4 3 4 2 3 5 5 2 43
Crumpler 6 6 2 4 4 3 3 3 3 5 8 4 51
Cue 2 3 2 3 4 2 3 2 2 5 6 2 36
David Lawrence 6 5 2 3 3 1 3 2 1 6 8 3 43
Declic 5 7 4 8 6 2 4 6 2 7 7 3 61
Deus Ex Machina 10 10 5 10 10 5 9 8 5 7 10 6 95
Dusk 2 5 4 7 8 4 6 7 3 7 7 3 63
Gorman 4 4 4 4 6 2 7 4 3 3 4 4 49
Haigh’s Chocolate 6 9 4 9 8 5 10 9 5 8 7 2 82
Jeanswest 3 3 2 6 4 1 4 3 4 5 5 1 41
Jurlique 6 7 3 9 8 3 6 7 2 6 7 3 67
Koko Black 5 5 2 9 7 3 6 8 4 9 9 2 69
Kookai 4 6 4 10 6 4 5 7 2 9 9 5 71
La Manna and Sons 8 8 5 8 8 5 7 6 4 7 7 3 76
Lorna Jane 9 10 3 3 3 3 9 6 5 3 4 4 62
M.J. Bale 8 8 4 7 5 2 6 4 4 7 8 3 66
Matchbox 6 7 3 3 3 2 6 2 1 5 5 2 45
Mecca 5 3 5 6 4 4 4 10 3 10 5 3 62
My Size 4 3 1 2 4 1 7 4 5 4 4 1 40
National Tiles 7 5 3 6 5 2 8 6 4 8 5 1 60
Petbarn 7 4 2 2 5 1 8 7 4 4 3 1 48
Peter Alexander 4 5 5 3 7 4 3 4 2 6 8 5 56
Platypus Shoes 5 5 3 6 6 2 2 5 1 6 4 1 46
Priceline 6 6 2 3 3 1 6 3 2 2 3 2 39
Ripcurl 6 7 3 6 7 2 4 6 4 6 4 4 59
RM Williams 7 9 2 7 10 4 10 6 5 8 9 4 81
Sass and Bide 6 5 3 7 4 3 2 3 2 8 8 3 54
Seafolly 8 8 4 5 6 2 7 2 4 6 6 3 61
Seed 5 5 2 4 4 1 5 4 3 7 6 4 50
Sheridan 6 5 4 5 7 3 7 7 4 6 7 2 63
Skin and Thread 2 6 2 7 3 1 7 5 4 7 5 2 51
Gewürzhaus 7 9 6 9 10 5 10 10 5 9 8 3 91
Sportsgirl 2 2 1 4 3 1 2 2 1 3 2 1 24
T2 10 8 6 8 9 4 9 9 4 10 5 5 87
Teds Cameras 3 4 2 1 5 2 7 4 1 3 4 3 39
Terry White 8 2 1 2 2 1 6 4 1 2 3 1 33
Tigerlily 2 5 3 5 7 2 5 5 2 4 6 3 49
Yd. 5 7 3 6 3 2 6 2 2 7 7 2 52
Zimmerman 4 6 2 8 3 3 4 3 2 8 9 3 55
29A u s t r a l i a n B et a i l S u r v e y Dec 2019 TH E WAY OU T OF AU ST R A L I A’ S R E TA IL SWAM P I S C L E AR . BR AN D S M U S T LE A R N F RO M T H E B E S T WHILE AVO I D I N G T H E P I T FA LLS E X H IB I T E D BY T HE WO R S T. I F AU S TR A LI A’S R E TA I L L A N D S CA PE I S TO R E M A I N A BOVE M U R KY WAT E R S, C H ANG E I S N E EDED. So, to all the retailers out there: use this study as a low hanging vine. Pull yourself out of this swamp and blow away that miasma that’s been plaguing retail for so long. Change comes from within, and as we’ve seen, there are plenty of retailers showing the way forward. But there are some other ominous clouds on the horizon that cannot be ignored. Australian founded no longer means Australian owned - even in our own top 10, nearly half have sold to international retail groups in the past five years. What this means for our retail landscape, we can’t say, but if our experience with umbrella corporations tells us anything, bricks and mortar may suffer. Either way, you can count on us to check in soon for retail’s annual health check. TH E B E TA I L S U RVEY WI LL R E T U R N I N 2 0 20... 30
Australian Be ta i l S u rv e y
De c 2 0 1 9
HE FUTUR
AB OUT 50 CRATES
50 Crates is a creative brand agency with presence in
Melbourne, Sydney, Shanghai and New York. Founded by
industry veteran, creative visionary and cultural anthropologist
Simon Hammond, 50 Crates exists to reconnect brands
and business leaders with the cultures and customers they
seek to serve. With a guiding belief that creativity can inspire
new ways of thinking, and ultimately change the world.
31A u s t r a l i a n B et a i l S u r v e y Dec 2019 32
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