Australia’s retail landscape is evolving rapidly, driven by technological advancements, shifting consumer behaviours and economic pressures.
According to Mal Siriwardhane, founder and CEO of B dynamic, the nation is facing significant changes across the retail sector.
“This year we are going to see a lot of change,” he says.
“While there are some economic headwinds afoot, we are also going to experience a lot of growth across the retail sector as interest rates start to ease and the flow on effect reaches consumer wallets.
“Consumers have had to be very savvy over the last few years in response to cost-of-living pressures. This has changed consumer behaviour and also spearheaded some interesting trends, all of which provide opportunities and challenges for retailers.”
Hyper-personalisation in online shopping
“Consumers expect tailored shopping experiences driven by AI and data analytics. Retailers will increasingly use real-time customer data to offer personalised recommendations, customised promotions and curated product selections,” Siriwardhane says.
“Big sweeping offers will start to disappear and more targeted and curated offers will appear based on the buying habits of consumers.”
Renewed focus on sustainable and ethical retailing
“Sustainability has faltered as consumers have not been able to pay for the luxury of this feature. However, as the cost of living eases, sustainability will undergo a big resurgence.
“It will be a top priority in 2025, with retailers integrating eco-friendly packaging, carbon-neutral delivery options and ethical sourcing into their supply chains. Brands that fail to demonstrate sustainability efforts risk losing consumer trust.”
Omnichannel shopping becomes standard
“Customers demand seamless shopping experiences across multiple channels, from physical stores to online platforms and social commerce. Retailers will focus on integrating in-store and online experiences with real-time inventory visibility and hybrid shopping models,” Siriwardhane says.
“Whether it is a full-scale store or a pop-up, we will see more and more hybrid options for shoppers to engage with brands.”
Acceleration of same-day and on-demand delivery
“The demand for faster fulfillment will see major retailers investing in advanced logistics networks and 3PL partnerships to enable same-day and even one-hour delivery services, particularly in metro areas.
“B dynamic has already reimagined and bolstered our capabilities to offer retailers same day delivery. This will become the norm in 2025 for many retailers as they compete for share of wallet.”
AI-powered customer support and virtual assistants
“AI chatbots and virtual assistants will become mainstream in retail in 2025, offering 24/7 customer support, streamlining queries and personalising interactions to improve customer experience and retention,” Siriwardhane adds.
“In fact, the sophistication of AI will be so advanced that shoppers won’t even know they are engaging with a bot, whether it be in text or voice form.”
Expansion of recommerce and the circular economy
“Resale platforms, rental models and refurbished goods will gain traction as consumers prioritise sustainability and affordability. Brands will introduce trade-in programs and second-hand marketplaces to extend product lifecycles.
“These will sit parallel with their core lines of new products.”
You can find more retail trends in our upcoming Autumn issue, which will be out soon.
