Almost all (99%) retailers plan to invest in customer experience in the next 12 months, investing 11% of total annual revenue on average, according to new research from Shopify.

This comes as the majority (79%) of Australians are cutting down on something to save money, and over half (54%) are seeking the best value in the current economic climate — from lower prices to higher quality products or experiences. 

The latest release of Shopify’s Australian Retail Report, conducted in partnership with YouGov, unpacks how retailers can invest for lasting success in today’s economy.

When it comes to consumers’ shopping priorities, over half (54%) of Australians are looking for the best value, up 10% from last year. When asked about switching brands, 92% of consumers have bought items from a different brand than they normally do, predominantly driven by cost, with 57% switching for a better price or discount promotion, up from 49% in 2023.

But value and price aren’t the only things consumers are shopping for. One-third (34%) of shoppers are looking for quality that lasts, while 23% still treat themselves every month or so, even if money is tight. This suggests there’s still space in the budget for little luxuries, opening up opportunities for savvy retailers.

More than two in five (43%) consumers prefer shopping in store in 2024, up from 38% last year, and proportionately more than those who like shopping online (31%). Half (49%) of retailers surveyed plan to increase their omnichannel experience investment in the next year, and 57% in the in-store experience, highlighting the returning role of physical stores in the retail mix. 

Shopify managing director for Asia Pacific and Japan, Shaun Broughton said, “In the last 12 months, we have seen marked changes in consumer shopping behaviours, which are driving a shift for retailers. From increased demand for value to a stronger preference for in-store shopping experiences, retailers have a renewed focus on efficiency and innovation.

“Although cost continues to be a key factor for consumers switching brands, it’s no surprise that retailers are choosing to compete on enhanced customer experience instead of slashing prices.”