Five tips for retail marketers during a turbulent period
The Australian retail landscape is undergoing a period of significant turbulence. 21.7% of the Australian workforce either unemployed or underemployed, and economic pressures are mounting.
Consumer confidence remains fragile, as the relief from interest rate cuts was short-lived, exposing the economic uncertainty that persists. PHD strategy director Natalie O'Hanlon give five tips to retail marketers on how best to navigate the landscape.
Despite a number of external challenges, business confidence in Australia remains strong, demonstrating the resilience of the retail sector.
Retail sales increased 3.8% in January 2025 versus January 2024, outpacing inflation. Growth in retail is driven by population expansion and the shift toward online marketplaces. Global giants like Amazon, Shein, and Temu are reshaping the retail industry, with a combined disruption worth $9 billion.
Although consumer demand for sustainable and locally made products remains, these platforms are thriving in the current economic climate.
While these economic pressures and global e-commerce marketplaces pose a threat to Australian retailers, all is not lost. Emerging technology and changes to consumer expectations present opportunities for retailers to reclaim their place in consumers’ minds and wallets.
Last month, I had the pleasure of attending the Mumbrella Retail Marketing Summit, where Australia’s leading brands and experts discussed the key issues impacting the industry.
I’ve summarised these into five key takeaways for Australian retailers.
Truly integrate retail media into your broader channel mix
Offering new and untapped revenue streams, retail media has been the buzz word in the industry for some time and it doesn’t appear to be slowing down. However, whilst closed loop measurement can track the sale, is it inflating the value of retail media? The $3b question remains, is retail media driving incrementality?
As Lachlan Brahe (GM Retail Media, Cashrewards) aptly put it during, “closed loop attribution should be the start of your measurement journey.” Retailers and brands should be looking at the net revenue increase and change over time to truly understand it’s impact.
The success of retail media therefore hinges on how well it integrates into broader marketing activities and the opportunity is to enhance the brand experience beyond price and promotions at the point of sale. This requires a new level of collaboration between marketing and trade teams. Media agencies are well positioned to facilitate this collaboration due to their ability for holistic channel planning.
Plan for hybrid retail models
As the largest consumer group of the near-future, Gen Z’s shopping habits are shaping the retail landscape. Despite financial concerns, Gen Z is willing to pay a premium for products and experiences they deem valuable. They are savvy shoppers who value sustainability, personalised experiences, and authenticity.
For Australian retailers, appealing to this demographic involves embracing digital-first strategies while blending them with immersive in-store experiences.
Retailers should invest in social commerce, leveraging platforms like TikTok and Instagram for seamless shopping experiences that feel authentic and connected.
Live commerce is a new frontier
Live stream shopping is gaining momentum in Australia, with brands like Big W leading the charge. This format blends the best of in-store experiences with the convenience of online shopping, offering real-time engagement and product demonstrations.
Whether you’re promoting an online exclusive or looking for deeper product demonstrations, live stream shopping provides another avenue for retailers to connect with consumers.
As this trend gains traction, retailers should be prepared to integrate live stream shopping it into their strategies to keep up with consumer demands for interactive and personalised experiences.
Natalie O’Hanlon
Measure what matters
With an abundance of data available, it’s easy for marketers to be led by short-term metrics or metrics that only show half of the picture. Retailers should consider incorporating metrics such as customer lifetime value as part of their measurement infrastructure for a more holistic view of their consumer.
Removing measurement silos though a holistic measurement and evaluation framework within retail businesses is vital for increased accountability and driving better business outcomes.
Adopt customer-centric strategies
The biggest theme I observed throughout the day is the consumer and ensuring as retailers and marketers, we ground ourselves and strategies that revolve around them.
In this evolving economic and social landscape, its essential retailers understand who their consumers are, what they value, and how their preferences are shifting.
Looking ahead
While the current economic environment presents significant challenges, Australian retailers are far from helpless. Integrating retail media into broader marketing strategies, planning for hybrid retail models, embracing new technology and holistic measurement all represent opportunities for Australian retailers.
Above all, retailers who ground their strategies in a deep understanding of their consumer will be better positioned to thrive, even in uncertain times.
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