Click and collect changes the economics of Australian shopping centres
- Written by: The Times
Australia’s major supermarkets are transforming consumer behaviour through home delivery and click and collect services, but the effects extend far beyond grocery retailing itself.
Shopping centres were traditionally built around foot traffic. Supermarkets acted as anchor tenants that attracted thousands of people into a precinct each week. Once inside, shoppers would often buy coffee, visit a bakery, browse fashion stores, purchase gifts, collect prescriptions or stop for lunch.
That ecosystem depended on physical presence.
Increasingly, Australians are no longer walking through shopping centres in the same way.
Click and collect allows customers to order groceries online, drive into a designated collection zone, load bags into a vehicle and leave within minutes. Home delivery removes the need to visit the centre entirely.
For consumers, the services are convenient and time efficient. For many small businesses operating inside shopping centres, however, the consequences are significant.
The café owner relying on passing traffic loses potential customers. The independent butcher sees fewer impulse purchases. Bakeries, juice bars, gift shops and specialty retailers all depend heavily on people physically moving through a precinct.
Historically, many small retailers accepted high shopping centre rents because of the guaranteed exposure generated by supermarket traffic. That equation is now changing.
Importantly, rents have generally not fallen in proportion to reduced foot traffic. Many small operators therefore face the double pressure of weaker turnover combined with fixed occupancy costs that remain high.
The issue is especially important for suburban shopping centres where supermarkets dominate customer visitation patterns.
Shopping centre operators themselves may also face strategic challenges. A centre designed around traditional walk-through retail behaviour may need to evolve as consumer habits shift toward convenience-based collection models.
"For small business owners, adaptation is becoming essential."
Retailers increasingly need to create reasons for customers to physically visit their premises rather than simply relying on incidental foot traffic generated by anchor tenants.
Loyalty programs, weekly specials, local community engagement and personalised service may become more important than ever. Cafés may need experiential appeal rather than simply convenience. Food retailers may focus on freshness, expertise and specialty offerings that supermarkets cannot easily replicate through online ordering systems.
Some businesses are already adapting through digital engagement of their own. Social media promotions, SMS specials, app-based loyalty rewards and localised marketing campaigns are becoming critical tools for maintaining customer relationships.
The broader lesson is that shopping centres are no longer operating under the same economic assumptions that existed a decade ago.
Consumer convenience has permanently changed retail behaviour.
Australians increasingly value speed, efficiency and reduced travel time. Supermarket delivery and click and collect services satisfy those preferences extremely effectively.
For shopping centre small businesses, the challenge is no longer simply attracting customers into a store.
It is first giving customers a reason to enter the shopping centre at all.
