Walk through the main street of almost any Australian or New Zealand town and a similar picture emerges. Long-established retailers continue to serve their communities, but vacant shopfronts have become more common than they once were.

The reasons extend far beyond the fortunes of any individual business.

Consumers now enjoy unprecedented choice. Products can be ordered from local retailers, national chains or overseas suppliers with only a few taps on a smartphone. Australian and New Zealand shoppers increasingly compare prices internationally before making purchasing decisions.

At the same time, retailers in both countries face many of the same challenges. Labour costs have risen. Commercial rents remain significant in many locations. Insurance, freight and energy costs continue to pressure margins.

The result is a retail sector undergoing profound change.

Yet opportunities remain.

Retailers offering specialist advice, local knowledge, quality service or products unique to their region continue to attract loyal customers. Tourism also supports many businesses in destinations such as Queenstown, Rotorua, Noosa, Airlie Beach and Byron Bay, where visitors seek experiences rather than simply products.

Retail has not disappeared.

It has become more specialised.

The Times View

Australia and New Zealand are experiencing similar retail transformations driven by technology, changing consumer expectations and global trade. The future is likely to favour retailers offering expertise, service and memorable customer experiences rather than simply selling products available anywhere in the world.