Online retail starts to plateau – in a surprise to some

The relentless rise of online shopping appears to have plateaued – new retail spending figures show barely any change since the COVID-19 pandemic in the proportion of sales bought outside of stores.

But stalled interest in buying online hurt some of the most prominent retailers specialising in that sector. Kogan, among the bigger ones, recorded a 28.4 per cent decline in sales over the 12 months to June 30, and a fall in adjusted earnings of nearly 64 per cent, sending the company’s share price tumbling.

“But consumers still want experiential retail, they want to come into stores, and many retailers are investing back into their stores and driving flagship experiences. That’s because you can differentiate and charge higher prices.”