Retail is evolving fast. With artificial intelligence gaining traction, shopper behaviours shifting and expectations rising, Australian retailers are in a strong position to reimagine how they operate and connect with customers. The latest Salesforce research from the Connected Shoppers Report (6ed) and the State of the Connected Customer (7ed) reveals what matters most right now and where the greatest opportunities lie.
Here are five insights grounded in global shopper data that have direct relevance to the Australian market.
Stores still matter and they are evolving
In-person shopping continues to play a major role. Shoppers expect 41% of their purchases to come from physical stores in 2026, only slightly down from 45% in 2024. But the role of stores is expanding beyond transactions.
Retailers are transforming stores into experience hubs and fulfilment centres. Currently, 59% offer in-store services such as repairs and personalisation, and 46% provide space for events or community gatherings.
What this means
Use your store network to deliver value beyond the sale. Consider integrating services such as styling advice, alterations, local activations or click and collect. For Australian retailers, where customers value both convenience and connection, this hybrid approach is a powerful differentiator.
Discovery is digital and social is where it starts
More shoppers are discovering products on social media. In 2024, 53% used social platforms for product discovery, up from 46% in 2023. For Gen Z, that figure rises to 76%. YouTube, Instagram and TikTok are now key drivers of inspiration.
Social channels are also becoming service and shopping platforms. Messaging apps are used by 31% of shoppers for customer support, and 25% have made a purchase directly on a social platform.
What this means
Invest in content that inspires and informs. Visual storytelling, user-generated content and creator partnerships help meet shoppers where they are. When it comes to social commerce, clarity and ease of use make a measurable difference.
AI agents are here but trust must be earned
Artificial intelligence is becoming a core capability in retail. Today, 84% of retailers are using AI in some form, and 75% say AI agents will be essential for success by 2026. These tools are already supporting customer service, inventory management and marketing content.
However, customer comfort depends on the context. While 40% of shoppers are comfortable with AI scheduling appointments and 38% are open to AI-generated personalised content, only 17% are comfortable letting AI make financial decisions on their behalf. Shoppers are seeking reassurance and control.
What this means
Start with practical use cases that deliver value and are easy to trust. Loyalty program optimisation, product recommendations and automated service triage are strong places to begin. Build confidence by being transparent about AI use and providing a clear path to human support. Transparency alone would increase trust for 42% of shoppers.
Unified commerce unlocks value and efficiency
Retailers clearly see the value of unified commerce. A strong 88% say it will significantly impact their business goals, and 25% say it’s critical to meet business objectives over the next two years. Despite this, only 15% have fully realised the benefits of a unified model.
Disconnected systems are still a challenge. Store teams are juggling an average of 16 systems, spending 26 hours on technology training in an employee’s first month, and only 17% having access to a unified view of customer data. This can limit service quality and create friction for customers.
What this means
Prioritise system integration and data visibility. Unified platforms improve team efficiency, reduce friction for customers and enable more effective use of AI. Modernising the retail technology stack is one of the clearest paths to performance, consistency and growth.
Loyalty is earned with relevance
Brand loyalty remains important but is increasingly dynamic. In the past year, 74% of shoppers switched brands. While price is a factor, service and experience are also key. Gen Z and millennials switch brands at 1.3 times the rate of baby boomers.
Loyalty programs can play a powerful role in retention when they are well designed. Shoppers value free shipping, early access, cashback and personalised offers. However, 35% are enrolled in programs they never use, which shows a need for more relevance and value.
What this means
Design loyalty programs that are easy to use and worth using. Offer rewards that reflect your audience, and consider adding exclusive experiences or gamified incentives to build ongoing engagement. Relevance drives retention.
Building for the future
Retailers are not just adopting new tools. They are laying the foundation for the next generation of customer experiences. To enable AI agents, real-time service and connected commerce, retailers are focusing on replacing legacy platforms and improving the flow of data across the business. These changes are making new levels of service and innovation possible.
The opportunity ahead is clear. The retailers who thrive in 2025 will be those who create connected, customer-led experiences that feel easy, intelligent and human.
Ready to connect the dots?
The latest data confirms what many retailers already know. Customer expectations are rising, and the gap between those who adapt and those who fall behind is growing. The good news is that Australian retailers are well positioned to lead. By creating connected, intelligent experiences that put people first, the opportunity is clear.
Whether it is unifying your channels, empowering your store teams or building trust in AI, the retailers who act now will be better placed to grow loyalty, improve efficiency and deliver sustainable value.
At Double H Marketing, we help retailers turn strategy into action. If you want to explore what these trends mean for your brand or where to begin, get in touch with us today.
