Australia and the broader Asia-Pacific (APAC) region stand at a pivotal moment in retail. While global trends in digital transformation, omnichannel innovation, and AI adoption are reshaping the industry, the unique dynamics of the Australian and APAC markets demand a tailored approach. Here, physical retail remains dominant—over 80% of sales in Australia still occur in-store—yet digital expectations are rising rapidly. Retailers must now bridge the gap between the enduring power of brick-and-mortar and the accelerating demand for seamless, data-driven, and personalized experiences across every channel.
Australian consumers no longer see a divide between online and offline shopping. They expect a unified, frictionless journey—researching products online, checking in-store availability, and completing purchases wherever and however they choose. Yet, many retailers still struggle with disconnected systems, leading to inconsistent stock visibility, disjointed loyalty programs, and gaps in customer service.
Leading retailers are investing in real-time inventory tracking, AI-powered personalization, and cross-channel transaction capabilities. For example, Woolworths has integrated AI-driven stock management and mobile engagement, reducing stock discrepancies by 40% and driving a 55% increase in click-and-collect orders via its Direct to Boot service. The Woolworths app now delivers real-time promotions, digital receipts, and custom shopping lists, setting a new standard for omnichannel convenience.
Kmart’s CIO, Viv Da Ros, emphasizes the need for a holistic approach: “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.”
Despite the digital surge, physical stores remain a cornerstone of the Australian retail landscape. Consumers seek hands-on product experiences, expert advice, and immediate access to purchases. Shopping is also a social activity—an opportunity for connection, discovery, and enjoyment.
Retailers are responding by enhancing experiential retail—investing in interactive displays, live demonstrations, and in-store events. Empowering staff with mobile POS and digital tools enables more personalized service and seamless checkout, while integrating digital and in-store services (like click-and-collect and real-time inventory visibility) creates a truly connected journey.
Traditional points-based loyalty programs are no longer enough. Today’s shoppers expect personalized rewards, exclusive experiences, and seamless integration across all channels. Everyday Rewards (Woolworths) and Flybuys (Coles) dominate participation, but the real differentiator is personalization:
Retailers are leveraging data analytics to deliver targeted discounts, early access to sales, and VIP experiences. Integrating loyalty across online, in-store, and app-based platforms ensures rewards are always accessible and relevant.
AI is rapidly moving from hype to reality in Australian retail. From predictive inventory management to hyper-personalized marketing, automation is driving operational efficiency and customer engagement. Retailers like Woolworths and Coles are using AI to optimize stock, personalize offers, and streamline fulfillment.
Generative AI is also emerging as a tool for content creation, customer service, and even co-creation of retail experiences, with consumers increasingly open to AI-powered shopping assistants and personalized product suggestions.
Sustainability is no longer a niche concern—it’s a business imperative. Up to 19% of Australian consumers actively research sustainability efforts before purchasing, especially in fashion, homewares, and beauty. Retailers are embedding ethical sourcing, circular economy initiatives, and eco-friendly logistics into their strategies.
Retailers like Team Global Express are leveraging data and AI to optimize fleet management and route planning, reducing emissions and building consumer trust through transparent sourcing and logistics.
While e-commerce continues to grow, profitability remains a challenge—especially in Australia, where 52% of retail decision-makers say their e-commerce business is not currently profitable. The shift to digital has increased costs in logistics, returns, and technology, while consumer expectations for fast, free delivery and seamless returns put further pressure on margins.
Australian and APAC retailers face a stark choice: adapt and innovate, or risk irrelevance. The future belongs to those who invest boldly in technology, data, and sustainable practices—creating seamless, personalized, and profitable omnichannel experiences that meet the evolving expectations of today’s consumers. The next generation of retail leaders will not be those who react to change, but those who drive it.
Contact Publicis Sapient to learn how we help retailers in Australia and APAC accelerate their omnichannel transformation and unlock new growth.