Six ways consumers are changing the world of retail

Same-day deliverythe who, what and when

Consumer demand is rapidly changing retail

Australians spent $17.3 billion retail in the 12 months to June 2015.*

*NAB Online Retail Sales Index June 2015

This is equivalent to 7.1% of spending at traditional bricks & mortar retailers in the 12 months to May 2015.

Once upon a time, same-day delivery was about bicycle

couriers flying around town with important business documents.

#1 Digital engagement

Consumers expect to be able to shopeverywhere, at any time.

Retailers are responding by offering a seamless ‘omnichannel’ shopping experience.

Today, everything from blood samples to life-saving medical equipment is delivered

same-day. So are many eCommerce purchases. Once considered a priority service,

it's now the norm.

buy

#2 Distance is dead

The internet has overcome the tyranny of distance between customers and overseas markets.

Customers expect to be able to purchase products from anywhere in the world, and retailers are making it happen.

Let's look at an example

Around Australia, more than 1,000 people are waiting for a kidney transplant. How do you get

compatible kidneys from organ donors to recipients on time?

$$$$$$

#3 Bargains and margins

Scale through sales is the key for online retailers.

Lower margins mean businesses must increase volume by winning customers. Online stores have to compensate for the instant gratification

of bricks-and-mortar retail with marketing and premium services.

Kidney transplant

It all starts in the donor's hospital, where keyhole surgery removes the viable kidney.

Most people prefer free standard shipping, but some retailers offer customers more convenience with same

day delivery to metropolitan areas.

#4 Delivery convenience

Receiving parcels is part of the retail experience.

Kidney transplant

The kidney is safely flown across the country. It has to travel quickly, in a temperature-controlled box.

Kidney transplant

By day's end, the kidney is safely transplanted. Another life transformed.

Better shipping and logistics allows retailers to offer more products and better manage their inventory levels, meaning customers have

more purchase options and face fewer delays.

Size 34 Size 36 Size 37 Size 38 Size 39 Size 40 Size 41

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Size 34 Size 36 Size 37 Size 38 Size 39 Size 40 Size 41

#5 Agile supply chains

Businesses are diversifying and globalising.

StarTrack is proud to help in situations like these.

Here's how we do it.

Traditional retailers are changing their mix of warehousing, adding more third-party logistics (3PL) warehouses offshore, while keeping

high volume stock closer to the customer.

#6 Warehousing

Downsizing, offshoring, and outsourcing.

13,500+vehicles on the road, and access to...

900+ national flights per day to 80 destinations

Saving the company $60m*

*SmartCompany, 2015

Case study: Kmart

Kmart turned around its profitability after closing 15 of its local distribution centres.

It stores products offshore and only brings them in when needed.

Next Flight

For important, high-pressure deliveries like transplant organs or urgent machinery, there's no margin for error.

Delays could cost millions, or even lives. StarTrack Next Flight is the gold standard for same-day delivery from

select locations in Australia

Sale

Case study: OzSale

OzSale offers members exclusive and significant discounts on products, beating other retailers on price.

It then uses StarTrack and Australia Post’s unrivalled distribution network to get

products to customers quickly.

Next Flight*

Ideal for: What you get:

Time-critical items

Corporate andgovernment agencies

After hours andweekend deliveries

Superior customer care

Delivery 24 hours a day, 365 days a year[†]

24-hour contactcentre

Online tracking

Same-day delivery is available from select locations and dependent on the time the booking is made, location and distance.

*

Service conditions and delivery standards apply, visit startrack.com.au for service coverage details and conditions.†

Keep up with with your customers, and they’ll stay with you.

The lesson?

Courier

For same-day, time critical metro deliveries, you can choose from a range of options to suit

your deadline – and your budget.All StarTrack drivers are security cleared so your

delivery remains in safe hands, door to door.

Find out more about how StarTrack can help your retail business.

Call 13 2345

A business of Australia Post

Courier

Ideal for: What you get:

Urgent cross-town delivery

Electronic proof of delivery

Secure or sensitive items

After hours/weekend delivery

Standard (3-4.5 hrs),Express (1.5-3 hrs), Immediate (1 + hrs) or After Hours/Weekend

Online tracking

Email/SMS updates

*Same-day delivery only available within the same metropolitan area of major Australian capital cities. Delivery times quoted are indicative only and depend on location, distance and other factors.

Security Express

If you have highly sensitive or valuable materials that must be delivered with absolute trust, StarTrack has

two same-day options: High Risk and Safe Hand.

Security Express

Ideal for: What you get:

Sensitive and valuablematerials

Dedicated 24/7/365National SecurityCoordination Centre

Government departmentsand private corporations

Government endorsedservice (SCEC)

Time-critical deliveriesTamper-evidentpackaging

Same-day delivery is available from select locations and dependent on the time the booking is made, location and distance.

*

myCourier

This free tracking app gives you further reassurance that your time-critical parcels are being delivered on

time. It includes real-time updates and notifications so you know your important deliveries are on their way.

Find out more about how StarTrack can help.

Call 13 2345

A business of Australia Post