The next online threat to Myer, JB Hi-Fi and David Jones

Click-to-buy applications are expanding to magazines, television shows, and more. How will Aussie retailers cope?

a woman

Publishers, credit card companies, media companies, grocery stores are all coming after the profits of traditional retail stores. In a wave of recent experiments, manufacturers and content producers are finding new ways of selling their goods. Starting with this month’s Wired, Vanity Fair and Esquire magazines, people reading on tablets will be able to purchase the goods they see in the magazines by simply tapping a shopping cart icon on the page.

Touted as ‘in-content’ purchasing, the process is possible through the use of the ShopThis! App along with Mastercard’s Masterpass technology. Purchases from the magazine will be added to a shopping cart hosted by retail partner Rakuten.com shopping, which the customer can pay for once they’ve finished reading. ShopThis! has been developed within Mastercard Labs, Mastercard’s R&D division.

The potential reach of the technology could be limitless; it could be applied to television ads, movies, TV shows, billboards, bus stops or games. US grocery delivery service Peapod has adopted one such application, a smartphone app that allows users to scan barcodes at home that triggers an order to be placed in their online carts.

If the order and payment system takes off, it could be bad news for traditional retailers such as David Jones (ASX: DJS), Myer (ASX: MYR), JB Hi-Fi (ASX: JBH) and Harvey Norman (ASX: HVN). The future may see electronics retailers selling phones or stereo systems from TV advertisements, or furniture retailers selling lounge suites used as props in movies.

Luckily for Australia’s retailers, this type of technology is still in the very early stages of development and larger retailers may eventually be part of the solution if they can couple with content providers and advertisers.

Foolish takeaway

The Internet has forced retailers to change the way they operate. JB Hi-Fi has responded the fastest and best so far, operating a comprehensive online store alongside its successful bricks and mortar stores. David Jones, Myer and Harvey Norman are slowly improving their online offerings but continue to be outperformed online by their overseas and online-only Australian companies. These companies will have to respond faster and faster in coming years, or risk being left behind.

Are retailers too risky for you? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading


Motley Fool contributor Andrew Mudie does not own shares in any of the companies mentioned.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »