Loans For Cars :: News
SHARE

Share this news item!

Australian Retailers Face Reckoning Amid Growing Online Competition

Australian Retailers Face Reckoning Amid Growing Online Competition

Australian Retailers Face Reckoning Amid Growing Online Competition?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Brick-and-mortar retailers in Australia are under mounting pressure as market dynamics shift dramatically.

According to the latest data from the Australian Securities and Investments Commission (ASIC), a staggering 768 retailers declared insolvency in the 2023-24 financial year. This marks a significant increase from 540 in 2022-23 and 319 in 2021-22.

The economic environment is also adding to the woes. Consumer sentiment continues to hover at recessionary levels, exacerbating the struggles for traditional retailers.

The Australian Bureau of Statistics (ABS) recently disclosed a worrying trend in retail sales. Quarterly retail sales have contracted by 0.3%, and are down 0.6% compared to last year. Remarkably, this marks the fifth consecutive quarter with a negative annual growth rate outside of pandemic disruptions, a rarity since the 1980s.

On a per capita basis, retail volumes saw a drop of 0.9%, the eighth consecutive quarterly decline, representing a 3.0% year-on-year decrease. This spells further trouble for conventional retail outlets grappling with diminishing foot traffic.

Competition from online retailers like Amazon and eBay is intensifying the challenges for brick-and-mortar stores. Offering unparalleled convenience and competitive pricing, these e-commerce giants are capturing an increasingly larger slice of the market.

Amazon’s strengthened foothold in Australia since its arrival in December 2017 poses a substantial threat. With the promise of low prices and the allure of complimentary 48-hour deliveries for Amazon Prime members, Amazon has continued to expand its reach. Earlier this year, the company announced plans to further grow its operations and distribution network in Australia.

A recent Roy Morgan study, reported by The New Daily, reveals a compelling trend: Amazon expanded its customer base by 16% in the year ending June 2024, attracting 1.1 million additional users compared to the previous year.

Brian Walker, CEO of Retail Doctor Group, posits that Amazon is on track to become one of Australia's largest variety retailers, alongside the likes of Kmart and Big W. "Amazon could become Australia’s largest general merchandise retailer within the next five years," Walker noted.

Walker underscores the necessity for existing retailers to revamp their competitive strategies. "You're under significant threat if you don’t offer advantages in speed, range, price, or convenience," he added.

Signs of this competitive stress are already visible, with retailers like Booktopia closing their doors in the face of relentless pressure.

Amazon’s Prime program benefits customers with rapid, free delivery for a modest annual subscription fee, encouraging ongoing use of Amazon’s services. Prime members also gain access to Amazon’s entertainment offerings, forming a package that rivals Netflix.

From Amazon's perspective, the Prime subscription provides a steady revenue flow and ensures loyal customer engagement, making further investments in fulfillment centers more economically viable.

While Amazon and Walmart dominate the American retail scene, the forecast suggests Amazon is on a path to significant dominance in Australia as well. The financial landscape is challenging for traditional retailers that must now focus on value and convenience to retain customer loyalty.

Published:Sunday, 4th Aug 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

ASIC's Findings Highlight Urgent Need for Reform in Car Finance Lending Practices
ASIC's Findings Highlight Urgent Need for Reform in Car Finance Lending Practices
20 Jan 2026: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has recently unveiled findings from its comprehensive review of the motor vehicle finance sector, highlighting concerning trends that are likely to prompt a tightening of lending practices across the industry. - read more
Affordable Electric Vehicles: New Low-Interest Loans for Eligible Australians
Affordable Electric Vehicles: New Low-Interest Loans for Eligible Australians
20 Jan 2026: Paige Estritori
The Australian government has launched a new initiative to make electric vehicles (EVs) more accessible to a broader segment of the population. This program offers low-interest loans to individuals earning less than $100,000 annually, as well as essential workers, facilitating the purchase of new and used EVs priced up to $55,000. - read more
Surge in Car Loan Delinquencies Sparks Financial Sector Worries
Surge in Car Loan Delinquencies Sparks Financial Sector Worries
20 Jan 2026: Paige Estritori
Australia is witnessing a notable increase in car loan delinquencies, raising alarms about the potential ripple effects on the broader financial sector. This trend reflects the financial strain many Australians are experiencing amid economic challenges. - read more
ASIC's Findings Highlight Urgent Need for Reform in Car Finance Lending Practices
ASIC's Findings Highlight Urgent Need for Reform in Car Finance Lending Practices
04 Jan 2026: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has recently unveiled findings from its comprehensive review of the motor vehicle finance sector, highlighting concerning trends that are likely to prompt a tightening of lending practices across the industry. - read more
Affordable Electric Vehicles: New Low-Interest Loans for Eligible Australians
Affordable Electric Vehicles: New Low-Interest Loans for Eligible Australians
04 Jan 2026: Paige Estritori
The Australian government has launched a new initiative to make electric vehicles (EVs) more accessible to a broader segment of the population. This program offers low-interest loans to individuals earning less than $100,000 annually, as well as essential workers, facilitating the purchase of new and used EVs priced up to $55,000. - read more
Surge in Car Loan Delinquencies Sparks Financial Sector Worries
Surge in Car Loan Delinquencies Sparks Financial Sector Worries
04 Jan 2026: Paige Estritori
Australia is witnessing a notable increase in car loan delinquencies, raising alarms about the potential ripple effects on the broader financial sector. This trend reflects the financial strain many Australians are experiencing amid economic challenges. - read more
ASIC Identifies Critical Issues in Australia's Car Finance Sector
ASIC Identifies Critical Issues in Australia's Car Finance Sector
19 Dec 2025: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has recently conducted a comprehensive review of the motor vehicle finance sector, uncovering significant concerns regarding lending practices. This examination has highlighted issues such as exorbitant establishment fees and a troubling rate of early loan defaults, raising questions about the adequacy of current lending standards. - read more


Car Loans Articles

Loans for Cars: Finding the Best Financing Options
Loans for Cars: Finding the Best Financing Options
The cost of buying a car is a major financial commitment, so it's important to consider all of your options before making a purchase. In this article, we look at some of the pros and cons of the most common car financing options, including leasing, hire purchase and paying cash, and what difference it makes whether you are buying a new or used vehicle. - read more
How to Find Budget-Friendly Car Insurance for Your New Vehicle
How to Find Budget-Friendly Car Insurance for Your New Vehicle
Buying a new vehicle is an exciting experience, but finding budget-friendly car insurance can often feel overwhelming. Understanding how to navigate the landscape of car insurance is crucial to ensuring you get the best deal possible. - read more
Avoid Rejection: Common Pitfalls to Sidestep in Meeting Car Loan Criteria
Avoid Rejection: Common Pitfalls to Sidestep in Meeting Car Loan Criteria
Entering the realm of self-employment brings with it not only the freedom to be your own boss but also unique challenges, especially when it comes to securing financing for significant purchases like a car. For the self-employed, the path to obtaining a car loan can be fraught with additional hurdles, stemming from the variable nature of their income and the scrutiny lenders apply to their financial profiles. - read more
Understanding Specialist Lenders: The Secret to Better Car Loan Terms
Understanding Specialist Lenders: The Secret to Better Car Loan Terms
Specialist lenders are financial institutions that offer tailored loan products to meet the unique needs of borrowers who may not be well-served by traditional banks. These lenders often have more flexible lending criteria and can accommodate a broader range of financial situations. - read more
Loans for Cars: Getting an Even Better Deal
Loans for Cars: Getting an Even Better Deal
If you're in the market for a new car, you're probably wondering what you need to do to get the best car loan. It's no secret that the car dealership will try to sell you a loan, but you don't have to take their offer! In fact, you can get a much better loan if you know what you're doing. - read more
Loans for Cars: Finding out if you Qualify
Loans for Cars: Finding out if you Qualify
Qualifying for a car loan isn't all that difficult. There are a few key things that lenders will look at when considering your application, including your income, credit history/existing loans, employment, age, and residency atatus. As long as you have a good understanding of these factors, you’ll be in a much better position to qualify for a car loan. Keep reading to learn everything you need to know about qualifying for a car loan! - read more
Essential Guide for Australian First-Time Car Buyers
Essential Guide for Australian First-Time Car Buyers
Welcome to your essential guide for Australian first-time car buyers! Whether you're dreaming of your first sleek, new vehicle or a reliable pre-owned car, buying a car for the first time is a big milestone and an exciting experience. - read more


Start Here !
life insurance
Apply now for your free Insurance assessment and price comparisons!

Life Cover Amount:
Your Postcode:
All quotes are provided free and without obligation. We respect your privacy.
Need A Car Loan Right Now?
Compare car loan rates & options from participating car finance brokers and lenders in our national referral panel to help you find competitive finance solutions. Fast and free... our initial eligibility assessment does not access your credit file!

 START HERE.

Loan Amount:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.

Compare car loan rates & options from participating car finance brokers and lenders in our national referral panel to help you find competitive finance solutions. Fast and free... our initial eligibility assessment does not access your credit file!

Knowledgebase
Equity Release:
A way for homeowners to release cash from the value of their home, either as a lump sum or in installments, while still living in the property.