The current economic climate has put pressure on many retailers, as consumer confidence is low and affecting sales figures. In response to hesitant customers, retailers are finding creative ways to attract business and increase profits.

River Island recently decided to expand its presence around the globe by offering worldwide shipping to consumers, including newly added markets in Australia and New Zealand. For the past two years, River Island has been creating a presence in an increasing number of countries, with new stores opening in Russia, Poland and the Benelux region. The new shipping expansion targets online shoppers who are not located near a physical store, as well as customers who appreciate 24-hour access to purchasing items online, Power Retail reported.

Similarly, The Marketing Store recently launched a holiday promotional campaign for Canon, offering customers a chance to win a three-day trip to a mysterious island. The offer is available to both in-store and online customers who purchase $90 or more of Canon Australia and New Zealand products in a single transaction and enter into a drawing for the free trip.

The offer is only available to customers in Australia and New Zealand, and the campaign includes in-store promotions, online advertising and social media communications with consumers.
 

Australian supermarket retailer Woolworths recently announced it will be creating more than 10,000 new jobs as part of a strategy to increase fresh food sales by $2.5 billion.

The retailer's new strategy includes improvements to its online business to meet the needs of online shoppers.

"The future demands that we provide the opportunity for customers to shop as they do today, but also shop online, either from home or on their smart phones, and that they can literally tap and take, or have it delivered," Grant O'Brien, Woolworths CEO, told the Australian Associated Press.

The retailer plans to provide consumers with a suite of multichannel offerings such as a mobile platform that connects directly to the supermarket's smartphone app and online store. The idea behind the online expansion is to provide consumers with more convenient options for shopping.

The Reserve Bank of Australia recently reduced the interest rate by 0.25 percentage points to 4.5 percent, pleasing many retailers throughout the country.

The Melbourne Herald Sun reported the cut in interest rate is expected to boost consumer confidence and help incite an economic recovery.

"Retailers will be happier than a kid on Christmas morning, with the announcement the RBA has dropped the cash rate by 25 basis points," said Margy Osmond, CEO of the Australian National Retailers Association. "Retail in Australia needs this boost, particularly going into Christmas 2011, a vital holiday period for the sector."

David Goodwin, president of the Chamber of Commerce and Industry Queensland, said the change in interest rate will likely alleviate business costs and spur consumer spending. Goodwin said local businesses and retailers are struggling to stay competitive given high operating costs and low consumer spending.

Retailers can take advantage of the low interest rate as well as gain new consumers by offering multichannel purchase platforms, so customers can shop via the web and physical stores. 

A new study from PricewaterHouseCoopers and Frost and Sullivan predicted Australian online shoppers will spend more than $13.6 billion online in 2011, which is a 13 percent increase from the $12 billion reported in 2010. Within the next four years, online spending by Australian consumers will reach $21.7 billion, with a compound annual growth rate of 12.6 percent, according to the report.

The study associated lower prices, convenience, greater product range and the rise of mobile devices as factors driving online shopping. Global supply chains are able to remove barriers that physical retailers face to deliver affordable options to consumers, and mobile devices and social media are playing a heavy role in purchasing decisions.

Another factor PwC believes is affecting online retail's growth is increasing consumer awareness of the benefits of online buying.

"Consumers have total visibility of global pricing - I bought a book recently and looked at all the U.K. and U.S. cities and there was only a 10 percent price difference, because Australian retailers are waking up to the fact that they have to compete," John Riccio, PwC partner, told the Australian.

According to Riccio, Australian shoppers make up to 44 percent of their online purchases through offshore websites, which have experienced a 25 percent increase in sales to Aussie consumers in the past 12 months.

In addition, the Australian Bureau of Statistics reported retail sales increased 2.1 percent in August compared to the same month in 2010, and PayPal predicted sales will exceed the number forecast by PricewaterhouseCoopers and reach nearly $38 billion by 2013.

In addition, the Australian Bureau of Statistics reported retail sales increased 2.1 percent in August compared to the same month in 2010, and PayPal predicteds sales will exceed the number forecasted by Pricewaterhouse Coopers and reach $30 billion by 2015.