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AU250 Formulating the Footprint

In compiling the RetailX Australia Top250 (AU250) retailers, we have set out to create a definitive list of the most significant ecommerce and multichannel retailers operating in the continent. In doing this, we’ve taken an algorithmic approach to blending and ranking the four components of a retailer’s Footprint: its amount of web traffic, retail revenue, ecommerce revenue, and the company’s total number of physical locations. Over the coming months, the Index will develop beyond this initial Footprint to include six Performance Dimensions.

Market complexity

Millions of Australian consumers buy from thousands of companies that range from niche and locality retailers to giants of global ecommerce. Despite the lack of tariffs and legal barriers to trade, companies operating in this market face the challenge of distance and fulfilment with low population density. A retailer operating in Australia covers a territory larger than the EU but with a fraction of the number of people. That’s why this Performance Index, which identifies and compares how the continent’s largest retailers respond to the same difficulties and opportunities, is so relevant. We started by identifying the biggest, most significant retailers. But we also asked ourselves two more questions: how can we measure Footprint in the most meaningful way? Plus which metrics are most effective in measuring the achievements of thousands of candidate companies? It’s an approach InternetRetailing research has taken to analysing the UK and the European Single Market and all metrics we measure here in Australia will be directly comparable to overseas markets.

What is ‘big’?

The AU250 Footprint Index measures ‘size’ across online and offline channels, as well as taking into account turnover from retail sales. Not every company that sells online is a retailer and we focussed on those companies that meet our definition of a retailer. First, with the assistance of Knowledge Partners Hitwise and SimilarWeb [IRDX VSWB], we tracked ecommerce web traffic from Australia, recording destination and interaction over a one-year period. Second, we counted the number of stores retailers operate within six states and two territories of our study. Third, we ranked retailers according to revenue, sourcing figures from corporate websites, media information and published results. Finally, we designed an algorithm to weight and summarise the results.

Our approach is not to assume that ‘big is best’. But size remains significant. In later reports, we’ll answer the question of which retailers are best but for now we’re identifying which companies are Australia’s biggest players.

Am I tracked?

We do our best to ensure every company of significance is tracked as a candidate for the Index but if you’d like to ensure that your company is in our list, fill out this form:

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