Exploring the forces shaping Australian retail and how retailers can respond.
Australia’s retail sector stands at a critical juncture amid persistent economic uncertainty. While consumer sentiment shows signs of recovery, challenges such as cost-of-living pressures, tariff disruptions, and rapid technological and competitive changes continue to strain traditional retailers. As global supply chains realign and AI accelerates, the industry faces mounting pressure to adapt or risk decline.
The Publicis Sapient Retail Consumer Survey Report explores shifting consumer expectations in this complex landscape. It highlights the urgent need for integrated, omnichannel, and data-driven strategies that unify physical and digital retail. As customer demands grow for more connected and personal experiences, retailers must embrace innovation to remain competitive and ensure sustainable growth.
Driving relevance
Opportunities in personalisation and connected retail experiences
Australian consumers now expect seamless, personalised experiences, reshaped by AI, marketplaces, social media, automation, and evolving supply chains. Retailers have a powerful opportunity to boost customer engagement—from hyper-personalisation to enhancing the employee experience.
- 76 % of consumers find discrepancies between online and in-store stock availability
- 80 % struggle to find products in-store after researching them online
- 63 % of shoppers expect AI-powered recommendations to improve their shopping experience by offering tailored product suggestions
- 67 % of consumers use mobile devices in-store to check reviews, compare prices, and verify stock availability
Five steps for retailers to thrive in 2025
The Retail Consumer Survey has revealed five key opportunities for retailers to strengthen resilience, enhance customer value, and drive sustainable growth in 2025. Here are the critical steps to thriving in a rapidly evolving retail landscape:
- Maximise physical retail investment
Despite the growth of e-commerce, physical stores remain a critical part of the retail ecosystem. Consumers continue to seek in-person product experiences, expert advice, and social connections.
- Make sustainability and supply chain a business imperative
Consumers expect ethical sourcing, carbon-neutral logistics, and eco-friendly packaging—and brands that act now will build trust and long-term profitability.
- Leverage AI & automation
From predictive inventory management to AI-driven customer engagement, automation is the new competitive advantage.
- Master omnichannel excellence
Shoppers expect seamless channel integration—and those who fall short will lose them to competitors.
- Redefine customer loyalty
One-size-fits-all rewards are out; winning brands now build emotional connections through personalisation, gamification, and VIP experiences.