business
Global E-Commerce Expansion Directly Hits Wollongong Retail Margins
International platforms continue to draw customers away from physical stores in the Illawarra region amid ongoing supply chain shifts.
How we reported this
Wollongong retailers recorded an average 12 percent decline in in-store sales during the first half of 2026 compared with the same period last year, according to figures compiled by the Illawarra Business Chamber.
The drop coincides with expanded marketing by overseas platforms that ship directly to Australian postcodes, undercutting local pricing on clothing, homewares and electronics. Businesses that rely on walk-in trade now face tighter cash flow at a time when commercial rents along main strips have remained steady.
Crown Street stores report fewer shoppers
Shop owners on Crown Street in the Wollongong CBD and inside Wollongong Central have described slower weekday foot traffic since March. Several outlets that sell locally made goods say repeat customers now mention seeing identical or similar items listed online at lower prices. The chamber has tracked enquiries from 47 member businesses in the past month seeking advice on inventory adjustments and online presence upgrades.
Chamber data released on 8 July showed average daily foot traffic counts at the Crown Street end of the mall fell to 4,800 people, down from 5,450 in January. Rents for ground-floor retail space in the same block average $680 per square metre per year, a figure that has not moved since late 2025.
Practical steps for local operators
Businesses are being advised to review supplier contracts and consider bundling local services with products to retain customers. The chamber will host a workshop at the University of Wollongong Innovation Campus on 22 July focused on digital storefront options and stock management. Operators who have already shifted part of their range online report that those channels now account for up to 30 percent of revenue, helping offset reduced counter sales.
Owners are urged to contact the chamber before the end of July to register for the session and to access a shared supplier database that lists regional makers willing to offer shorter lead times than overseas alternatives.