Retail in 2024: The big picture
Retail in Australia continued to record low current value growth in 2024. Despite inflation in the country marginally easing during the year, household savings continued to fall due to higher interest rates.
Shifting trust among consumers and shrinkflation strategies
2024 saw local consumers begin to question the role of major retailers in driving inflation amid publicity of high profits and government scrutiny. An ACCC (Australian Competition and Consumer Commission) report found that Australians are losing trust in major retailers due to concerns over price manipulation associated with discounts compared to the original retail price.
Industrial disputes at Australian ports drive up cost of imports
Freight rates experienced a sharp spike towards the end of the review period due to increased demand for shipping containers. An industrial dispute between a major union and multinational logistics company DP World left thousands of shipping containers at ports across Australia, handling imports and exports ranging across food, clothing, appliances and furniture.
What next for retail?
The cost of living in Australia is expected to ease in 2025, with government measures put in place to assist consumers with inflationary pressures, including electricity rebates and rent assistance. The Reserve Bank of Australia expects inflation to fall to reach its target range of 2-3% over 2025.
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Overview:
Understand the latest market trends and future growth opportunities for the Retail industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Convenience Stores
- Discounters
- Hypermarkets
- Supermarkets
- Traditional Grocery Retailers
- Apparel and Footwear Specialist Retailers
- Electronics and Appliance Specialist Retailers
- Health and Beauty Specialist Retailers
- Home and Garden Specialist Retailers
- Department Stores
- Variety Stores
- Warehouse Clubs
- Direct Selling
- Homeshopping
- Vending
If you're in the Retail industry in Australia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Retail in Australia report includes:
- Analysis of key retail trends
- Detailed segmentation of offline and online retail sales
- Historic channel sizes (retail value sales, outlet counts, and selling space)
- Company and brand market shares (retail value sales and outlet counts)
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Retail in Australia?
- Which are the leading retailers in Retail in Australia?
- How are products distributed in Retail in Australia?
- How is the rise of e-commerce and the expansion of modern grocery retail impacting traditional retail?
- How significant are discounters and private label in Australia?
- To what extent are sales shifting towards digital channels?
- What is the long-term outlook for bricks-and-mortar?
- How is macroeconomic and political uncertainty affecting the retail industry?
- What types of retailers are seeing the fastest growth in digital sales?
- What is the future of retail?
Retail in Australia
Retail in 2024: The big picture
Shifting trust among consumers and shrinkflation strategies
Industrial disputes at Australian ports drive up cost of imports
What next for retail?
Informal retail
Opening hours for physical retail
Seasonality
End of year/Christmas shopping
Back-to-school
DISCLAIMER
Convenience Retailers in Australia
KEY DATA FINDINGS
Expansion by Australian supermarket giants Coles and Woolworths
High tax rate on tobacco accelerates decline of tobacco sales, pushing convenience retailers to innovate
BP set to roll out refurbishment of its forecourt retailers across Australia
Rise of e-commerce set to pose threat to convenience stores
7-Eleven announces business strategy to double it footprint as it looks to drive growth in Australia
Better-for-you food and drink options to drive product innovation over forecast period
Supermarkets in Australia
KEY DATA FINDINGS
Further growth for supermarkets, driven by duopoly of Woolworths and Coles
Shrinkflation trend forces law change on unit pricing
Customers turn to private label amid ongoing cost-of-living crisis
Enhancing the supermarket experience based on specific customer needs
Local supermarkets make significant investments as Amazon emerges as a strong competitor
Coles trials its new AI-powered Smart Trolley
Hypermarkets in Australia
KEY DATA FINDINGS
Australians turn to more affordable products during times of economic hardship
Kmart retains dominance of hypermarkets
Big W exclusive partnership with athleisure brands offers customers high-quality activewear at lower price points
Positive outlook for hypermarkets as economic pressures ease
Big W struggles to compete with Kmart but e-commerce could offer greater profit
Kmart likely to further focus on automation with click-and-collect options
Discounters in Australia
KEY DATA FINDINGS
Falling sales driven by outlet reduction, but discounters remains attractive
Aldi is considered most affordable grocery retailer in Australia
Aldi’s Special Buys strategy is a key source of sales for the discounter
Aldi is expanding its distribution hubs in Australia to drive future growth
Lack of online sales could hinder Aldi’s prospects for further market penetration
Aldi plans to expand its sustainability goals with new partnerships
Small Local Grocers in Australia
KEY DATA FINDINGS
Stagnant growth for small local grocers as consumers seek value and convenience
Community groups help Asian grocers thrive during economic downturn
Rise in shoplifting a key area of concern for smaller businesses
Subdued outlook as channel struggles to operate in current economic conditions
Australian government’s plans to remove surcharges on card payments to increase costs for smaller businesses
Uber Eats develops app to cater for smaller retailers
General Merchandise Stores in Australia
KEY DATA FINDINGS
Department stores struggles to achieve stronger performance following post-pandemic rebound
Solid growth for variety stores despite operating in a difficult economic environment
Merchandising strategies key for variety stores in difficult business conditions
Challenging outlook for department stores as consumers’ spending habits change
Despite stagnating sales, there is potential for variety stores to expand
Development of omnichannel shopping could leave smaller variety stores behind
Apparel and Footwear Specialists in Australia
KEY DATA FINDINGS
Highly promotional retail environment impacts channel’s profits
Myer acquires apparel brands from Premier Investments
Mosaic Brands enters voluntary administration
Improving economic performance to boost spending on discretionary goods
Shifting focus towards digitisation by apparel and footwear specialists
Tailoring business to capture sustainability-minded consumers
Appliances and Electronics Specialists in Australia
KEY DATA FINDINGS
Cost-of-living pressures limit discretional spend among consumers
JB Hi-Fi is looking to expand its offer in Australia
Threat from e-commerce intensifies, pushing specialists to improve in-store experience as part of differentiation strategy
Population growth and plans for construction of residential buildings set to support future sales of appliances
Sustainability through energy efficiency a key driver of consumer choice
E-commerce expected to thrive due to convenience and competitive pricing
Home Products Specialists in Australia
KEY DATA FINDINGS
Cost-of-living pressures limit discretionary spending by local consumers
Shipping costs impact retailers’ profits
Ikea enters into partnership with Australia Post to further expand delivery footprint
Population growth and residential construction plans set to support sales of home products, while pet shops and superstores offers further solid growth potential
Freedom adds AI-based search to its e-commerce platform
Omnichannel strategy is attractive to consumers of home products
Health and Beauty Specialists in Australia
KEY DATA FINDINGS
Performance by beauty specialists driven by popular brands
Growth for pharmacies stagnates as channel faces rising competition from supermarkets
Chemist Warehouse and Sigma Healthcare merger a major development in pharmacy retailing
In-person experience a vital feature to sustain beauty specialists in Australia
Ability to sell e-vapour products without prescription can improve pharmacy foot traffic
Health and personal care stores to face greater competition from numerous channels
Vending in Australia
KEY DATA FINDINGS
Steady growth for vending driven by consumers seeking convenience
New Coke&Go innovation aims to enhance the vending experience
Competitive landscape remains relatively static amid vending’s recovery
Pessimistic outlook for vending due to high prices and competition
Further innovation in vending can help to offset declining consumer spending
Shift towards better-for-you snacks could help vending remain competitive
Direct Selling in Australia
KEY DATA FINDINGS
Rising competition for direct selling from other channels
Consumer health and beauty products still have a loyal customer base to leverage
Tupperware files for bankruptcy and ceases operations in Australia
Slow performance for direct selling amid changing consumer shopping habits
Major product categories still have opportunity to sustain established target audience
E-commerce can help direct selling brands to thrive in changing landscape
Retail E-Commerce in Australia
KEY DATA FINDINGS
Convenience and price drive growth of e-commerce in Australia
Rising popularity of key sales events as consumers postpone purchases
Strong growth for marketplaces as consumers look for ways to save
Omnichannel is strongest strategy for many retailers in Australia
Increasing investment in digitalisation
CHOICE campaigns for stronger legislation surrounding product offer by third-party platforms
The following categories and subcategories are included:
Retail
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- Convenience Stores
- Forecourt Retailers
- Supermarkets
- Hypermarkets
- Discounters
- Warehouse Clubs
- Food/Drink/Tobacco Specialists
- Small Local Grocers
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- Department Stores
- Variety Stores
- Apparel and Footwear Specialists
- Appliances and Electronics Specialists
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- Home Improvement and Gardening Stores
- Homewares and Home Furnishing Stores
- Pet Shops and Superstores
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- Beauty Specialists
- Pharmacies
- Optical Goods Stores
- Health and Personal Care Stores
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- Bags and Luggage Specialists
- Jewellery and Watch Specialists
- Sports Goods Stores
- Traditional Toys and Games Stores
- Other Non-Grocery Retailers
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- Fashion Vending
- Health and Beauty Vending
- Appliances and Electronics Vending
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- Alcoholic Drinks Vending
- Hot Drinks Vending
- Soft Drinks Vending
- Tobacco Products Vending
- Foods Vending
- Home Products Vending
- Other Products Vending
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- Apparel and Footwear Direct Selling
- Personal Accessories Direct Selling
- Eyewear Direct Selling
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- Beauty and Personal Care Direct Selling
- Consumer Health Direct Selling
- Tissue and Hygiene Direct Selling
- Appliances and Electronics Direct Selling
- Drinks and Tobacco Direct Selling
- Foods Direct Selling
- Home Products Direct Selling
- Other Products Direct Selling
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- Apparel and Footwear E-Commerce
- Personal Accessories E-Commerce
- Eyewear E-Commerce
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- Beauty and Personal Care E-Commerce
- Consumer Health E-Commerce
- Tissue and Hygiene E-Commerce
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- Consumer Appliances E-Commerce
- Consumer Electronics E-Commerce
- Toys and Games E-Commerce
- Drinks and Tobacco E-Commerce
- Foods E-Commerce
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- Home Care E-Commerce
- Home and Garden E-Commerce
- Pet Care E-Commerce
- Other Products E-Commerce
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- First-Party (1P) Marketplace E-Commerce
- Third-Party (3P) Marketplace E-Commerce
- Grocery E-Commerce
- General Merchandiser E-Commerce
- Apparel and Footwear Specialist E-Commerce
- Appliances and Electronics Specialist E-Commerce
- Home Products Specialist E-Commerce
- Health and Beauty Specialist E-Commerce
- Leisure and Personal Goods Specialist E-Commerce
- Other E-Commerce Retailers
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Retail
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Retail research and analysis database.
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