Australia’s retail sector stands at a pivotal crossroads. While global trends in digital transformation are reshaping retail everywhere, Australia’s market presents a distinct set of challenges and opportunities. With over 80% of retail sales still occurring in physical stores, a high degree of consumer expectation for seamless digital-physical integration, and ongoing supply chain disruptions from global tariff changes, Australian retailers must chart a path that leverages both local strengths and global best practices.
Australian consumers are digitally savvy, yet deeply value the in-store experience. According to recent consumer research, the top reasons Australians visit stores are to experience products hands-on and to make immediate purchases. However, 76% of shoppers report discrepancies between online and in-store stock availability, and 80% struggle to find products in-store after researching them online. This disconnect highlights a critical need for unified inventory visibility and seamless omnichannel experiences.
Meanwhile, global tariff changes and supply chain realignments are bringing new pressures. Cheaper goods are entering the market as exporters look beyond traditional partners, and cost-of-living pressures are shifting consumer priorities. Retailers must respond with agility, resilience, and a renewed focus on operational efficiency.
Australian shoppers no longer see a divide between digital and physical retail—they expect a connected, consistent experience across all touchpoints. Whether browsing online, visiting a store, or using a mobile app, consumers demand effortless transitions, real-time stock visibility, and personalized engagement. Key expectations include:
Despite these expectations, many Australian retailers still struggle with disconnected systems, inconsistent stock visibility, and fragmented loyalty programs. The result is customer frustration and lost sales opportunities.
Woolworths has set a benchmark for omnichannel excellence in Australia. By integrating AI-powered stock management, mobile engagement, and real-time fulfillment, Woolworths has reduced stock discrepancies by 40% and seen a 55% increase in click-and-collect orders via its Direct to Boot service. The Woolworths app delivers AI-powered personalization, offering real-time promotions, digital receipts, and custom shopping lists—demonstrating the power of data-driven, customer-centric innovation.
Kmart has also embraced a holistic approach to omnichannel transformation. As Viv Da Ros, CIO of Kmart, notes, “We can no longer be building separate systems by channel. It really needs a holistic approach, where we have one provider who’s building an omnichannel shopping experience.” Kmart’s focus on unified systems, real-time inventory tracking, and AI-driven personalization is enabling the brand to deliver seamless experiences and targeted offers that drive engagement and loyalty.
At Publicis Sapient, we help Australian retailers unlock value across the supply chain by focusing on four foundational pillars:
Australian consumers are increasingly prioritizing ethical and eco-conscious shopping. Up to 19% actively research sustainability efforts before purchasing, especially in fashion, homewares, and beauty. Retailers are responding with circular economy initiatives, sustainable packaging, and AI-driven logistics to reduce waste and emissions. For example, AI-powered inventory and logistics systems are improving efficiency and cutting excess stock, while last-mile sustainability is being enhanced through electric-vehicle deliveries and carbon-offset shipping.
The future of Australian retail supply chain is agile, intelligent, and customer-obsessed. By investing in global inventory visibility, AI-powered demand planning, fulfillment and returns optimization, and a modern cloud foundation, retailers can:
Publicis Sapient partners with leading Australian retailers to design and deliver supply chain transformations that drive measurable business impact. Our SPEED approach—Strategy, Product, Experience, Engineering, Data & AI—ensures that transformation is not just a technology upgrade, but a holistic reinvention of operations, customer experience, and business models.
Ready to reinvent your supply chain for the omnichannel era? Let’s start the conversation and help your business thrive in Australia’s unique retail landscape.