Inside the Retravision collapse: Six things the retailer failed to do

4. Poor internet strategy

Retravision’s website offers no way to purchase a product online, as it is made up of hundreds of independent stores who compete against each other.

The Retravision website does not list prices and instead asks customers to call the store to find out the price of a product, a strategy that is “obsolete”, according to Walker.

“People just don’t bother; there is too much choice,” says Walker.

“People don’t contact the store; there is just too much price transparency. If you look at competitor’s sites, they are fully price-modelled.”

5. Trade down to rental

On the back of a 26% increase in profit announced today by Thorn, which owns Radio Rentals, Walker says Retravision is likely to have been affected by consumers renting appliances rather than buying them.

“There is a definite trade down to rental. I think what has happened is that in the ‘battler markets’ there is a trade-off into rental,” says Walker.

6. Stores located on high streets

Finally, Walker says Retravision is likely to have suffered from the lack of Retravision stores in “prime sites”.

“They were certainly placing themselves in B+ and A- sites. I don’t see them as being in prime sites,” says Walker.

“[Retravision’s] strategy largely was high street but the vast majority of Australians shop in shopping centres.”