Australian retailers are boosting sales and discounts to combat slowing spending caused by inflation and rising interest rates. With discretionary income shrinking, mid-market brands face challenges, while Amazon gains ground with value-focused shoppers. As Trent Rigby from RetailOasis notes, “Smaller wallets mean that retailers have to work harder to take an increased share of this spend.”

Australia’s retail sector remains resilient despite economic pressures, with affluent consumers driving spending. However, rising interest rates and cost-of-living pressures are impacting small retailers and big-ticket purchases. RetailOasis co-director Trent Rigby highlights slowing sales for JB Hi-Fi, Harvey Norman, and Adairs, warning that smaller retailers face growing challenges in forecasting demand and managing debt.

Australian retailers are expanding globally, with brands like Rebecca Vallance and Toys “R” Us entering key international markets. Retail Oasis notes that “it’s become easier for retailers to expand internationally due to increased accessibility to global markets.” Australian brands, especially in food and beauty, are seen as high quality, making overseas growth more viable despite economic challenges.

Teleport’s enLIGHTenment exhibition in Sydney highlights the power of immersive experiences, offering key lessons for retailers. RetailOasis director Trent Rigby says experiential retail is shifting towards “localising experiences” to engage customers. Brands like Krispy Kreme and Camp toy stores use interactive elements to attract visitors, with Rigby noting, “It’s a good way to get people back into the store.”

Retail experts predict bigger sales and better discounts leading up to Christmas as spending slows. Trent Rigby from Retail Oasis notes, "Smaller wallets mean that retailers have to work harder for an increased share of this spend," driving more promotional activity. Sales are expected to ramp up from October as retailers compete for consumer dollars amidst rising costs.

Amazon is gaining ground in Australia, leveraging supply chain strength and technology to outpace local competitors. RetailOasis strategist Emma Easton notes, “Where Amazon are really succeeding is the supply chain presence and technology.” With Prime’s next-day delivery and expansion into key categories, analysts predict Amazon could overtake eBay as Australia’s top retail site, pushing local brands to enhance digital strategies.

Wendy's, the US fast food giant, is preparing to enter the Australian market with plans for 10 stores. Known for its square-shaped patties and indulgent menu items like the Dave’s Triple Cheeseburger, Wendy’s will compete against giants like McDonald’s and Hungry Jack’s. Retail analyst Steve Kulmar suggests the initial rollout is a trial to test the market.

In this segment we talk about Discount Department Store, Big W’s, shift to close stores.