Shopify (SHOP) has introduced its Point-of-Sale (POS) system in Australia in what marks its first major push in the country’s physical retail space. Canada-based Shopify operates a platform where businesses come to set up digital storefronts to connect with online shoppers.
In Australia, a Shopify survey found that while consumers in the country are shifting to shopping online, they still like going out to stores. For example, the study showed that the number of Australians mainly shopping online would more than double from 7% to 15% post-pandemic. At the same time, 64% of Australians will mostly shop in stores post-pandemic.
The survey made the company realize that Australian merchants need tools to succeed both online and in-store in what is called omnichannel selling. Shopify’s integrated POS system will enable merchants to process in-person payments and easily manage online and offline sales so they can keep pace with the evolving shopper demands.
“Shopify’s POS is the engine that powers omnichannel selling for retail merchants,” said Shaun Broughton, Shopify’s APAC managing director.
Australia is rising quickly as an important market for Shopify, hence the latest big push into the physical stores. The company believes its POS solution will make Australian retailers better prepared for the future. (See Shopify stock analysis on TipRanks)
Loop Capital analyst Anthony Chukumba upgraded Shopify’s stock rating to a Buy from Hold while maintaining a $1,400 price target, which implies 12.83% upside potential.
“We continue to believe Shopify has a compelling merchant value proposition, which is further bolstered by the company’s growing ecosystem,” noted Chukumba.
Consensus among analysts on Wall Street is a Moderate Buy based on 12 Buy and 9 Hold ratings. The average analyst price target of $1,469.58 implies 18.43% upside potential to the current price.