Australian shoppers demand digital deals, personalisation & AI

New research from Shopfully has highlighted changing consumer behaviour in Australia, with digital engagement playing a central role in how shoppers approach in-store purchases.

The State of Shopping 2025 report, which surveyed nearly 1,000 Australian consumers, found that digital touchpoints are the starting point for 83% of shoppers, underscoring their significance in shaping purchasing decisions ahead of visiting physical outlets.

With more than half of respondents expressing little optimism about their purchasing power improving in 2025, financial caution has continued to influence shopping habits. Shoppers reported a greater inclination towards researching products, comparing prices, and seeking promotions online before committing to buy in-store, reflecting heightened price sensitivity in the prevailing economic environment.

The study suggests that the merging of online and offline channels is increasingly crucial for retailers aiming to capture consumer attention. Failure to deliver personalised and timely digital experiences early in the shopping journey may result in missed opportunities for engagement.

"Retailers today must start the consumer journey where it begins: online. With the majority of shoppers now researching purchases via mobile, digital touchpoints are no longer optional, they're essential. But simply being visible isn't enough. To stay competitive, retailers need to drive digital discovery by leveraging consumer data to craft personalised, relevant experiences that speak to individual intent," said Brendan Straw, Country Manager for Shopfully Australia.

He added, "From the first online interaction to the final in-store purchase, there needs to be a seamless, connected journey. This means orchestrating consistent, insight-driven engagement across digital and physical environments to ensure shoppers remain guided, informed and inspired - right up to the moment they walk through the door and beyond, into the post-purchase experience at home."

The survey indicated that promotions play a pivotal role in influencing consumer behaviour, with 84% of shoppers acknowledging their impact on what and where they buy. More than half (54%) believe their spending power will not increase in 2025, and 51% reported having changed their habits to prioritise deals and discounts.

For retailers, the report points to the necessity of a strategic, omnichannel approach to delivering promotions that are both timely and targeted, in order to stand out in a crowded market.

Beyond mere promotions, consumers are reportedly seeking value across their shopping experience, both online and in-store. The data showed that while 50% of Australians find ads helpful in discovering new products and deals, 42% employ ads specifically to compare prices and secure the best offers.

There is also a demand for personalised content: along with customised discounts and sales alerts (77%), consumers would like real-time product availability updates (55%), notifications about new arrivals in favourite categories or brands (49%), and engaging content such as articles, recipes, and how-to guides (37%).

Straw commented, "Meeting consumers where they are is only half the battle. To truly succeed, an omnichannel strategy must do more than exist across multiple platforms - it needs to add real value at every touchpoint. Retailers who take the time to understand what their customers want and deliver content that's timely, relevant and engaging - will stand out. It's this depth of personalisation that separates a good strategy from a great one."

The report also explored the growing role of technology in shopping. Over half (54%) of Australian shoppers currently integrate technology into their shopping routines, and there is increasing interest in more advanced tools. Notably, 42% of those surveyed are open to using artificial intelligence in shopping, with 25% interested in AI-powered shopping assistants and 17% interested in AI-generated shopping lists. A further 18% saw value in virtual try-on tools for clothes and cosmetics.

Straw emphasised the importance of adopting new technologies, saying, "To stay ahead of evolving consumer expectations, retailers must go beyond traditional tactics and embed innovation into the heart of the shopping journey. Embracing smart technologies like AI and virtual tools isn't just an advantage, it's becoming essential to deliver the seamless, personalised experiences today's shoppers demand."

The report concludes that the future of Australian retail is being shaped by hybrid buying patterns and heightened expectations for both personalisation and technology-driven experiences. Consumers expect not just convenience but also value, relevance, and an integrated journey across digital and physical platforms.

Straw said, "Retailers that embrace smart technologies and tailor their omnichannel strategies to meet real consumer needs will be geared to stay ahead of the curve."