Omnichannel Excellence in the Nordics and Australia: Regional Approaches to E-commerce Growth and Profitability

Navigating the Complexities of E-commerce Profitability

Retailers in the Nordics and Australia are at a pivotal juncture. While both regions have demonstrated a strong commitment to digital transformation, they stand out globally for the unique challenges they face in achieving e-commerce profitability and executing on omnichannel investments. As digital commerce continues to claim a larger share of total retail, the imperative is clear: retailers must not only grow their digital channels but do so profitably, leveraging omnichannel strategies that bridge the gap between physical and digital experiences.

The Profitability Paradox: Growth vs. Execution

Across the Nordics and Australia, retail leaders overwhelmingly recognize the steps needed to improve e-commerce profitability. Yet, a significant proportion struggle to translate this knowledge into action. In the Nordics, 71% of decision-makers report difficulty investing in necessary improvements, while in Australia, 60% echo this challenge. This gap between strategic intent and operational execution is more pronounced here than in other mature markets, underscoring the need for tailored solutions that address regional market dynamics, consumer expectations, and regulatory environments.

Key Challenges Identified:

E-commerce profitability lags behind revenue growth: In both regions, a substantial share of retailers report that their e-commerce business is less profitable than their in-store operations. In Australia, over half of retail leaders say their e-commerce business is not currently profitable, while in the Nordics, only 59% expect e-commerce profit improvement in the coming year—well below global averages.
Investment execution gap: Despite high awareness of what needs to be done, barriers such as legacy systems, organizational silos, and resource constraints hinder the ability to invest in digital customer experience, omnichannel integration, and supply chain modernization.
Pandemic-driven acceleration, but with suboptimal outcomes: The rapid digital ramp-up during the pandemic left many retailers with fragmented systems and processes, leading to inefficiencies and missed opportunities for seamless omnichannel experiences.

Regional Market Dynamics and Consumer Behaviors

The Nordics: Digital Maturity Meets Investment Hurdles

Nordic retailers are recognized for their early adoption of digital technologies and high levels of consumer digital engagement. However, this maturity has not always translated into profitability. Key factors include:

Fragmented investment: Many retailers have implemented digital solutions in silos, resulting in disconnected customer journeys and operational inefficiencies.
Consumer expectations: Nordic shoppers are digitally savvy, expecting seamless transitions between online and offline channels, real-time inventory visibility, and personalized engagement. Retailers that fail to deliver risk losing market share to more agile competitors.
Regulatory environment: Stringent data privacy and consumer protection regulations require robust compliance frameworks, adding complexity to digital transformation initiatives.

Australia: The Omnichannel Imperative in a Hybrid Market

Australian retail is characterized by a strong brick-and-mortar presence—over 80% of sales still occur in physical stores—yet consumers increasingly demand integrated digital experiences. Distinctive market features include:

Physical-digital disconnect: Despite years of omnichannel rhetoric, true integration remains elusive. Consumers report frequent discrepancies between online and in-store stock, and 80% struggle to find products in-store after researching online.
Price and convenience pressures: Australian shoppers are highly price-sensitive, with 83% citing lower prices as the main reason for shopping with online-only competitors. Fast shipping, broad product selection, and hassle-free returns are also critical drivers.
Personalization and loyalty: Shoppers expect AI-powered recommendations and personalized rewards, but many retailers lag in delivering these experiences across channels.

Unlocking Omnichannel Excellence: Publicis Sapient’s Approach

To overcome these regional barriers, retailers must adopt a holistic, data-driven approach to omnichannel transformation. Publicis Sapient partners with leading retailers in the Nordics and Australia to deliver:

1. Seamless Omnichannel Integration

Unified commerce platforms: We help clients replatform and modernize their commerce infrastructure, enabling a single view of the customer and inventory across all channels.
Connected customer journeys: By integrating digital and physical touchpoints, we ensure shoppers can research, purchase, and return products wherever and whenever they choose—without friction.

2. Supply Chain Modernization

Real-time inventory visibility: We implement solutions that provide accurate, up-to-date stock information across stores and online, reducing customer frustration and lost sales.
Shipping and fulfillment optimization: Our teams design and deploy micro-fulfillment centers, automated picking, and flexible delivery options to meet evolving consumer expectations while controlling costs.

3. Data-Driven Personalization and Loyalty

AI-powered recommendations: Leveraging advanced analytics, we enable retailers to deliver hyper-personalized product suggestions and promotions, increasing conversion and customer lifetime value.
Omnichannel loyalty programs: We design loyalty ecosystems that reward customers seamlessly across digital and physical channels, driving engagement and retention.

4. Organizational and Cultural Transformation

Breaking down silos: We guide clients in restructuring teams and processes to foster cross-functional collaboration, ensuring that digital, store, and supply chain teams work towards shared goals.
Agile, test-and-learn culture: Our approach emphasizes rapid experimentation and continuous improvement, enabling retailers to adapt quickly to market changes and consumer feedback.

Regional Success Stories: What Good Looks Like

Nordics: Retailers that have invested in unified commerce platforms and real-time inventory management are seeing measurable improvements in both customer satisfaction and profitability. For example, those who have integrated AI-driven analytics into their loyalty programs report higher engagement and increased share of wallet.
Australia: Leading grocers and department stores have successfully implemented click-and-collect, direct-to-boot, and AI-powered personalization, resulting in increased digital sales and improved operational efficiency. Retailers that have modernized their supply chains and empowered staff with digital tools are delivering superior customer experiences and building long-term loyalty.

The Path Forward: Thriving in a Digital-First Retail Landscape

For Nordic and Australian retailers, the path to profitable e-commerce growth lies in mastering omnichannel excellence. This requires:

Strategic investment in unified platforms and data infrastructure to enable seamless customer experiences and operational agility.
Modernizing supply chains to support flexible fulfillment and rapid response to demand fluctuations.
Embedding personalization and loyalty at the core of the customer journey, powered by AI and real-time data.
Fostering a culture of innovation and cross-functional collaboration to break down silos and accelerate execution.

Publicis Sapient stands ready to help retailers in the Nordics and Australia navigate these complexities, leveraging our global expertise and local insights to deliver transformative results. The future of retail in these regions belongs to those who act boldly, invest wisely, and put the connected customer at the heart of every decision.

Ready to accelerate your omnichannel transformation?

Contact Publicis Sapient to learn how we can help you achieve profitable e-commerce growth in the Nordics, Australia, and beyond.