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Shaun Broughton, Shopify’s managing director for APAC and Japan.
At the same time, shoppers are turning to digital tools, particularly AI, to help them navigate an expanding field of choices. Searches powered by AI, prompts for deals, personalised recommendations and automated assistance are increasingly shaping the discovery phase. Since January, Shopify has recorded a large rise in AI driven traffic to merchant sites, alongside a significant increase in orders attributed to AI search activity.
“People are starting their research earlier, using AI to compare options and get inspiration, and moving between online and in store channels to find the product that best suits their needs,” says Broughton.
One of the clearest changes this year is timing. What was once a late spring sprint has turned into a season that begins in September for a growing share of households. Half of Australian shoppers had planned to start by October, with more than one in four beginning even earlier.
For retailers, this has real operational implications. Inventory planning, promotions and content cycles are shifting forward, often by several weeks, as brands try to meet customers at the moment they first express intent.
Cranky Health chief growth officer Nicole McInnes says the change has been clear for direct-to-consumer brands. “Last year Black Friday felt more like Black Friday month,” she says. “People were browsing and purchasing our products much earlier than the traditional peak, so we focused on landing offers earlier in November. It is about matching how consumers now shop.”
The earlier start has also changed how promotions work. Simply competing on the deepest discount is no longer a viable long-term strategy. Margins are tight, and the season is too long for a single burst of activity to carry a brand. Retailers are spreading their offers across multiple touchpoints, sequencing campaigns to sustain engagement, and using first party data to reach high intent shoppers with far greater specificity.
“Today’s shoppers are increasingly value driven, but that value isn’t always related to price, it’s also about clarity, speed and ease,” says Charlee Standley, head of digital and ecommerce at Showpo. “We’re seeing fatigue with complicated promotions that rely on codes, exclusions or fine print, and as a result, clear, transparent pricing and seamless UX are converting much better this season.”
Showpo extended its Black Friday Cyber Monday period to build momentum. “Attention is earned over time,” Standley says. “We are giving shoppers fresh reasons to re-engage rather than compressing everything into one moment.”
Cranky Health chief growth officer Nicole McInnes.
Hybrid shopping becomes the norm
The Australian shopping journey is now a hybrid one, with customers blending online research, social discovery and in store visits more fluidly than before. Nearly half of shoppers say they are more likely to buy after discovering a product both online and in store, a sign of how channel boundaries have blurred.
Retailers are responding by increasing their investment across digital channels, from social ads and search to influencer collaborations, digital video and SEO. The aim is to appear consistently wherever a shopper is likely to begin exploring.
But even as discovery expands, the checkout remains a critical friction point. More than half of Australians have abandoned a purchase because the process felt too complex or slow. This is especially pronounced among higher spenders, who expect checkout experiences to be intuitive and fast.
Broughton says small improvements can have a major impact. “More than half of Australian shoppers have abandoned a purchase due to complex checkout processes,” he says. “A great checkout should be fast and intuitive, guiding customers smoothly from cart to confirmation.”
For physical retailers, the same principle applies. Staff equipped with mobile devices to check stock or take payment, clear signage and logical store layouts help customers move more confidently from browsing to buying.
AI grows, but trust still matters
Despite the rise in AI driven tools, trust remains a major consideration for Australian shoppers. More than seven in ten remain wary of the technology, and most still want human connection at key decision moments. Retailers are conscious of this tension, often choosing to deploy AI behind the scenes rather than in customer facing interactions.
Showpo uses AI to tailor content, optimise campaigns and test creative variations, but avoids allowing the technology to speak directly on behalf of the brand.
Charlee Standley, head of digital and ecommerce at Showpo.
“No tool can replicate the tone, detail or emotional nuance our customers expect from a fashion brand,” Standley says. “It is about balance and using tech to make things better, not just more automated.”
Cranky Health uses AI to guide segmentation and forecasting. “It allows us to understand who is looking for what, when and why,” McInnes says. “That means we can make the path to purchase feel more personalised and relevant.”
For many retailers, the most transformative AI applications are operational. Shopify’s Sidekick tool, for example, is being used to plan stock levels more accurately or triage common customer queries so staff can focus on more complex needs during peak season.
The year ahead
The structural shift in Australian retail is now well underway. Spending is rising, but it is more purposeful. Shoppers are starting earlier, scrutinising value and relying on AI to streamline their choices. Hybrid shopping has become the default, and seamless experiences are now essential rather than optional.
For businesses, the task is to meet this new consumer with clarity, precision and confidence. That means acting earlier, engaging customers across more touchpoints, removing friction wherever it appears and using technology to support rather than replace human connection.
Broughton says retailers are sharpening their execution as customer expectations rise. “Retailers that respond with precision, blending early engagement, frictionless checkouts and the right mix of AI and human touch, will be best positioned to convert intent into lasting loyalty,” he says.
To find out more about Shopify’s 2025 Global Holiday Retail Report, please visit here.
