The Australian retail market is forecast to exhibit steady growth from 2023 to 2028, with a projected CAGR of 1.8%.
Total retail sales are expected to reach $261.9 billion by 2028 from $239.7 billion in 2023. While the market progresses upward, it will likely encounter inflation, supply chain disruptions and global geopolitical tensions. The overall outlook for the Australian retail sector remains muted, but we can expect gradual expansion anticipated in the coming years.
Contrary to expectations, rising costs have not necessarily led to reduced spending in Australia. Instead, consumers are adapting their shopping habits, altering what they purchase, where they shop online, and how they make buying decisions. This shift has significantly transformed the Australian retail landscape, requiring businesses to stay agile and adapt their strategies to keep pace with evolving consumer preferences.
Online Shopping Households in Australia
Between 2019 and 2023, the proportion of Australian households using internet shopping has steadily increased.
According to the study by Australia Post, the number of families that purchase online will rise steadily, from 8.1 million in 2019 to 9.5 million in 2023. This amounts to a 4% compound annual growth rate (CAGR).
We can conclude that convenience—which enables customers to shop whenever and wherever they want—might be a key motivator. Modern technological innovations, such as safe payment gateways and quick delivery choices, have increased Australian families' confidence and dependability.
