Kogarah Retailers Embrace Digital Transformation to Compete with Online Giants
Retailers along Kogarah’s Railway Parade are fighting back against online competition by embracing digital transformation, with several businesses reporting significant improvements in customer engagement and sales after implementing new technologies.
The shift comes as part of a broader initiative supported by Georges River Council to help local businesses modernise their operations. Over 20 retailers in the Kogarah CBD have participated in the council’s Digital Ready program over the past six months.
What Digital Transformation Looks Like on the High Street
For many traditional retailers, going digital doesn’t mean abandoning their physical stores. Instead, it means enhancing the in-store experience with technology.
Harrison’s Homewares, a family-owned shop that has operated on Railway Parade for 35 years, recently implemented an augmented reality feature that lets customers visualise furniture in their homes before purchasing.
“We were losing customers to online furniture stores,” said owner Robert Harrison. “Now people can see exactly how a couch will look in their living room. It’s actually better than shopping online because they can also touch and feel the quality.”
Bella’s Boutique has introduced a virtual styling service, allowing customers to book video consultations with staff who can suggest outfits and arrange items for in-store pickup or delivery.
The Kogarah Bookshop implemented an AI-powered recommendation engine that suggests books based on customers’ reading history, similar to major online retailers but with a local, personal touch.
Results and Investment
Early results from the Digital Ready program are encouraging:
| Metric | Average Improvement |
|---|---|
| Customer foot traffic | +15% |
| Sales conversion rate | +22% |
| Average transaction value | +18% |
| Customer satisfaction | +25% |
The average investment for participating businesses was approximately $8,000, with council grants covering up to 50% of costs for eligible retailers. Several businesses worked with AI agency specialists in Sydney to develop customised solutions.
Challenges and Lessons Learned
The transition hasn’t been without difficulties. Staff training was cited as the biggest challenge by participating businesses.
“My team was initially resistant,” admitted Chen Li, owner of Kogarah Electronics. “They thought technology would replace them. But once they saw how it actually made their jobs easier and helped them serve customers better, they became enthusiastic advocates.”
Data privacy was another consideration. Businesses had to ensure their new systems complied with Australian privacy laws, particularly when collecting customer information for personalisation features.
Advice for Other Local Retailers
Participating business owners offered several tips for retailers considering digital transformation:
- Start with customer pain points: Identify what frustrates your customers and use technology to solve those problems
- Don’t try to do everything at once: Pick one or two technologies to implement first
- Invest in training: Technology is only as good as the people using it
- Collect feedback: Ask customers what they think and be willing to adjust
- Consider partnerships: Neighbouring businesses can share costs for compatible systems
What’s Next
Georges River Council has announced an expansion of the Digital Ready program for 2025, with additional funding for retailers in Hurstville and Mortdale. The council is also exploring a shared e-commerce platform that would allow local retailers to compete more effectively with major online marketplaces.
“The future of local retail isn’t about choosing between physical and digital,” concluded Harrison. “It’s about combining the best of both worlds. We can offer something Amazon can’t: genuine human connection, community knowledge, and the ability to see and touch products. Technology just helps us do that better.”
Retailers interested in the Digital Ready program can contact Georges River Council’s economic development team for more information.