Bunnings has won the top spot as Australia’s most beloved retailer for 2021, a new report has revealed.
According to Power Retail’s latest e-Commerce Playbook report, the national hardware chain pipped Woolies for first place, with the supermarket giant winning the silver medal.
The 2020 pandemic lockdowns saw Australians gravitate online for their shopping needs, forcing retailers to strengthen their online shop fronts.
Bunnings rose to the top of the pack as people spent more time at home and sought to upgrade their living space.
Not only that, but the chain store is also a major supplier to builders, commercial tradies and the housing industry, the report noted.
Meanwhile, Woolworths – though it lost the crown – has secured its place as Australia’s favourite supermarket.
“As a trailblazer for innovation during the pandemic, the grocer had to increase fulfilment operations to ease the strain of overwhelming online orders,” the report said.
It was also the preferred grocer during the padnemic’s first wave, accounting for more than half (57.4 per cent) of all online grocery spending.
In third place was Kmart, which had shot up from 8th place last year. The discount department giant recorded massive online growth in 2020 as people went online to buy affordable homeware items during the pandemic.
In fact, to deal with the swell of online shoppers, Kmart had to introduce a pretty drastic measure.
“In April , its online platform was so popular that the retailer had to introduce an online queue to offset the level of incoming shoppers.”
Last year’s runner-up, Coles, dropped down to fourth place, with online-only retailer Kogan hot on its heels at fifth place, up from 11th in 2020.
“2020 was an impressive year for Kogan. The Australian online retailer experienced skyrocketing sales as well as an increase in active customers,” the report said.
The retailer lists more than 10 million products on its site that range from consumer electronics to office supplies and white goods.
Kogan’s revenue shot up an eye-watering 88.6 per cent year-on-year to $414 million in the last six months of 2020.
Winners of other categories included Koala, as top emerging online retailer, as well as Princess Polly, for most improved online performance.
The crown for top innovator went to period underwear brand Modibodi, while CUE was named top customer experience retailer.
Power Retail assesses the organisations based on 41 separate metrics to identify where the retailers are succeeding, such as search capabilities, time spent on the website, delivery options, payment options, mobile app success, and more.
COVID forced more Australians to shop online than ever before, said Power Retail managing director Grant Arnott.
“It’s been very impressive to watch how brands have adapted quickly to the high demand,” he said.
“Retailers that led the charge, including Bunnings, JB Hi Fi and Officeworks, did well because they learnt to diversify their networks and not just rely on one channel for success.”
Online sellers of electrical goods, essential goods and sportswear were “upward movers” during 2020 as Microsoft leapt by 24 spots and Rebel, BCF [Boating, Camping, Fishing] and Anaconda joined the ranks of the top 25.
Meanwhile, some strong fashion brands struggled with supply and sales, and online beauty retailers rose the ranks, with Adore Beauty nabbing ‘top user experience’ and ‘top beauty retailer’, and Showpo taking the crown for ‘top social retailer’.
Moving forward, customer loyalty will become key for brands, said Arnott.
“Brands need to ensure repeat purchasing is occurring and that there is a focus on personalisation in 2021. Revenue and traffic overall is still increasing year-on-year and the conversion rate is strong, so the onus will be on retailers to ensure they’re delivering the best user experience possible, otherwise shoppers will simply look elsewhere.”
Here are the top 100 Australian retailers for 2021:
Temple & Webster
The Good Guys
First Choice Liquor
Bras N Things
My Pet Warehouse
PC Case Gear
Best & Less
Peter’s of Kensington
Here are the top retailers in other categories:
Most Improved Online Performance: Princess Polly
Top Emerging Online Retailer: Koala
Best Email Marketing: Adore Beauty
Top Home & Decor Retailer: Temple & Webster
Top User Experience: Adore Beauty
Top Beauty Retailer: Adore Beauty
Top Electrical & Office Retailer: Officeworks
Top Small Medium Retailer: Bicycles Online
Top Innovator: Modibodi
Top Sustainable Retailer: Flora & Fauna
Top Sports & Outdoor Retailer: Rebel
Top Customer Experience: CUE
Top Department Store: Bunnings
Top Mobile Experience: Bras N Things
Top Fashion & Accessories Retailer: Cotton On
Top Social Retailer: Showpo
Top Online Only Retailer: Kogan
All Star Legends: Gabby Leibovich & Hezi Leibovich (Catch)