In a climate where smaller retailers are assumed to be facing an imminent demise, Mark Presnell, Managing Director of Convergence, an Auckland-based eCommerce integration firm, contrarily believes they are in fact primed for growth in the near future. It is the retail middle that is predicted to struggle in the coming years.

Presnell insightfully notes the difficulties faced by medium businesses, such as Godfreys and Michael Hill, who often lack the scale of larger retailers and the customer focus that characterises smaller businesses. He suggests this renders them susceptible to changing consumer behaviour and mounting costs, saying "They often lack the scale of mega-stores and the customer focus of smaller businesses, leaving them vulnerable to changing consumer behaviour and rising overheads."

Another factor contributing to these challenges is a well-noted failure to adapt to the online retail landscape by many traditional brick-and-mortar stores, some of whom continue to prioritise their physical presence over their online ventures. As Presnell further elaborates, this often leads to "outdated product listings, inaccurate pricing, stock discrepancies, and poor customer communication."

This inconsistency irks consumers looking for a seamless shopping experience, driving them back to the reliability of larger online platforms, or the personalised service offered by smaller retailers. As Presnell explains, "Big-box stores can afford to dedicate significant resources to online operations, which medium businesses often struggle to match. Smaller businesses can now expand beyond, for example Invercargill and go national if not global—they have lower overheads and offer a more intimate experience."

From this perspective, it is medium-sized retailers who are expected to continuously struggle within the realm of online shopping. Presnell's advice for retailers in New Zealand thus centres on the need to acknowledge and adapt to the inherent change in the retail landscape, without compromising on relationship-driven personal customer service.

For instance, while constructing an efficient online presence does require time and resources, ignoring it completely is a surefire path to failure. For retailers finding this transition challenging, there are government programmes and experts available to bridge the skills gap and equip retailers with the necessary tools for online success.

Further to this, current business models which treat online and in-store operations as separate entities are effectively creating unnecessary work. Integrating these operations can expedite processes and provide other convenient options like 'click-and-collect', enriching overall customer experience.

Lastly, networking and collaborating with other online retailers can lead to valuable support and insights. Shared best practices and collaborative solutions have the potential to ensure even the smallest businesses can be effective competitors.

To sum up, in Presnell's words, "The future of retail belongs to those who adapt and innovate. By embracing technology, prioritising customer service, and building strong online presences, small retailers can not only survive but flourish in the years to come."