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Retail at a Crossroads: The Imperative for Digital Transformation
Explore the forces shaping Australian retail and how retailers can respond
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.

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76%of consumers find discrepancies between online and in-store stock availability
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80%struggle to find products in-store after researching them online
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63%of shoppers expect AI-powered recommendations to improve their shopping experience by offering tailored product suggestions
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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
Make sustainability and supply chain a business imperative
Leverage AI & automation
Master omnichannel excellence
Turn insights into action
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