Shopify Australian Retail Report 2024: Key Takeaways for Commercial Clients

The retail landscape in Australia is undergoing significant changes in 2024, shaped by evolving consumer behaviours and macroeconomic pressures. For commercial clients considering financing to meet their business objectives, understanding these trends can provide critical insights into where the market is heading and how to best position their investments.

Cost of Living and Value-Driven Shopping

• Consumer Focus on Value: With rising cost-of-living concerns, 79% of Australian consumers are cutting down on spending, seeking the best value in their purchases. This trend is driving increased competition among retailers, who are exploring new ways to demonstrate value beyond just price reductions.
  
  
• Spending Prioritisation: While many consumers are reducing discretionary spending, there is still a segment that values quality and is willing to spend on products that offer long-lasting benefits. Retailers that can balance cost with perceived value stand to gain​.

The Shift to Unified Commerce

• Omnichannel Experiences: Consumers increasingly prefer shopping in-store, with 43% favouring this option in 2024, up from 38% last year. However, the integration of online and offline channels is crucial, as 26% of consumers enjoy both equally. Retailers are investing in seamless omnichannel experiences to meet these expectations​.
  
  
• Investments in Technology: Retailers are prioritising investments in business intelligence, automation, and AI to enhance operational efficiency and customer experience. The focus on these technologies is driven by the need to streamline operations, reduce costs, and provide personalised shopping experiences.

Securing Customer Loyalty Beyond Price

• Loyalty and Quality: While price remains a significant factor, 51% of consumers indicate that high-quality goods keep them loyal to a brand. Retailers are increasingly looking to differentiate themselves through superior customer experiences, loyalty programs, and exclusive offers rather than competing on price alone.
  
  
• Customer Retention Strategies: With the rise in consumer expectations, retailers are doubling down on customer service and retention efforts. This includes enhancing loyalty programs and personalising the shopping experience to create a stronger connection with customers​.

Operational Efficiency and Staff Retention

• Efficiency as a Priority: As staffing challenges persist, with 29% of retailers citing poor staff retention as a key issue, there is a growing emphasis on operational efficiency. Automation and AI are being leveraged to reduce the reliance on human resources and improve productivity.
  
  
• Investing in Employees: To combat these challenges, 65% of retailers plan to increase spending on employee attraction and retention programs, recognising that a well-supported workforce is essential to maintaining high levels of service and operational efficiency.

Strategic Recommendations for Business Owners

• Focus on Value Creation: In an environment where consumers are more value-conscious, businesses should emphasise the quality and longevity of their offerings, alongside competitive pricing.
  
  
• Invest in Technology: To stay competitive, consider financing solutions that enable investments in business intelligence, automation, and omnichannel capabilities, ensuring your business can meet evolving consumer demands.
  
  
• Enhance Customer Experience: Prioritise customer service, personalisation, and loyalty programs to build long-term relationships with clients, which can drive sustained business growth.
  
  
• Operational Efficiency: Streamline your operations by adopting technologies that reduce manual processes, enhance supply chain management, and optimise staffing.

By understanding and responding to these trends, commercial clients can better position their businesses for success in the evolving retail market of 2024.

Please reach out to our team for a discussion about your funding requirements.

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You can read Shopify's report in entirety at https://www.shopify.com/au/enterprise/retail-report-2024