Online shopping threatens retail sector

Robina Town Centre, on the Australian Gold Coast, has introduced the latest technology to hit the retail industry, Sky News writes.

The Virtual Change room is designed to show customers the latest fashion options and how they would look on the body.

However, the device's release comes as the retail sector is facing a growing crisis, which the National Retail Association warns will dwarf the problems experienced in the manufacturing sector.

Nine MSN says Gary Black, the Association's executive director, said retail was tipped to shed 33 000 jobs over the next few years because of competition from overseas online outlets.

"The jobs crisis unfolding in retail dwarfs the predicament and dilemmas that are confronted by the demise of the Australian manufacturing sector."

A new study, commissioned by the National Retail Association and conducted by accountancy firm Ernst and Young over the past six months, estimates the national retail sector, which employs 1.3 million Australians, will lose 118 000 jobs over the next three years in the face of severe competition from online shopping.

Of those, 33 000 jobs will go because of a $1 000 GST-free threshold for goods bought online and imported.