Nike edges Aussie icons to be named Australia’s favourite retailer

The latest edition of the annual consumer survey by OC&C Strategy Consultants has revealed Nike to be Australia’s favourite retailer, with the American sports giant edging out a number of Aussie icons.

Launched locally in 2021 after running overseas for almost 15 years, the Retail Proposition Index as compiled by OC&C Strategy Consultants examines consumer perceptions and behaviours and the factors behind shifting trends.

Now into its fourth edition, this year’s survey canvassed more than 5,000 Australian shoppers for their opinions on 92 leading retailers, with Nike proving the most popular ahead of weekend institutions Bunnings and Dan Murphy’s.

To compile the rankings, OC&C Strategy Consultants asks respondents to rate retailers on their recent shopping experiences and score key elements such as price, range, and service, as well as provide their general sentiments in areas such as cost of living, sustainability, and use of AI.

Since the survey’s inception in 2010, OC&C Strategy Consultants has analysed in excess of 60 million ratings worldwide.

According to the results, one trend in particular stood out in this year’s survey; the element of trust. With the cost-of-living crisis biting harder here than abroad – the number of local shoppers who report having less discretionary income than a year ago was 15 percent higher than the global average – Australian consumers are making their purchases with companies they feel they can trust.

This was demonstrated with physical retailers gaining an edge over discount online-only rivals, such as with Big W ranking in third in the trust sub-category as compared to Temu in 92nd and last. With a tilt toward more familiar brands, Shoppers may also be privileging what they perceive to be higher quality products for their longer-term purchases, with Adidas likewise entering this year’s top ten.

Notably, the pair of global sports & apparel retailers pushed out two cosmetics suppliers – Mecca and Sephora, along with Uniqlo – while the remainder of the top ten was reasonably static with a continued favouring of domestic outlets with a wide range and footprint and generally lower price-point. Here, Chemist Warehouse and JB Hi-Fi rounded out the top five, with Officeworks in sixth.

Costco also held its position in the top ten, demonstrating trust as a significant factor above uncritical loyalty for local organisations, with consumer sentiment towards Woolworths and Coles having plummeted over the past three years. The duopoly has now dropped from the top spots in the grocery category to falling behind not just Costco but other challengers such as Aldi and IGA.

“An implication of the dramatic fall suffered by both is that the door is wide open for global players to continue to make inroads,” stated OC&C’s Australian managing partner Jeremy Barker. “Also of concern is that consumers see very little differentiation between the two majors on any dimension, meaning that they are primarily competing with each other on convenience and location.”