A whopping 95% of consumers are actively seeking the best deals, and 87% are staying at home more often. Retailers should meet the customer where they are, aiming to surprise and delight with those little luxuries that put a smile on one’s face. Indeed, 67% of consumers are still looking to splurge a little on themselves despite the headwinds. By getting the offer right and providing value, your customers will reward you.

While consumers may at first be sceptical about new technologies like artificial intelligence (AI) chatbots and augmented and virtual reality (AR/VR), retailers that deploy and integrate them seamlessly will drive better customer experiences, conversions and satisfaction. The Australian consumer is savvy, genuine and sophisticated, and they expect the same of their retailers. When consumers interact with AI, they expect truly generative interactions that blend smoothly with human connection. Similarly, as more retailers build marketplaces to expand their product range and target new markets, consumers are intrigued; but differentiating the marketplace without compromising its identity, values and customer expectations is a challenge in itself.

Over the last 12 months, data security breaches, allegations of price gouging, unethical behaviour and poor treatment of employees have significantly impacted consumer sentiment. The best retailers are the most trusted, and consumers will absolutely reward them. 69% of retailers and 52% of consumers say product quality is the most important driver of trust. Fair pricing comes out on top for 19% of consumers, though just 8% of retailers are on the same page. Businesses must have a strong grasp of what builds trust with their customers: it’s easily shattered, and consumers will punish any breach of confidence. 

Consumers are looking for sustainability in their purchasing decisions and care about the reputation of the organisations they interact with – particularly in younger age groups. But while climate change is the top concern for 24% of millennials and 25% of Generation Zs, the cost of living is considered more pressing (40% and 43% respectively). Retailers need to put sustainability at the core of their business practices and value chains and find innovative ways to combat climate change, but without increasing the production cost and subsequent retail price   of their offer. 

2024 has been a tough year for both retailers and consumers, and it may be some time before relief from high interest rates and cost of living pressures.  
Even so, retailers can still make a meaningful impact on consumers.

Australians want to create special moments at home and spend quality time with loved ones these holidays. The scene is set for retailers to play a pivotal role and make it a magical time for consumers.

This holiday season the seas may be rough, but now’s the time to trim the sails and chart a course to a brighter 2025.