ICYMI: Retail News Roundup
ICYMI: Here’s what the team at RetailOasis has been diving into this month. We believe in staying ahead of the curve, so we’ve rounded up some articles that pack a punch with fresh perspectives and bold insights. Whether it's about shifting consumer behaviours or emerging trends in retail, these reads are guaranteed to spark new ideas and get you thinking differently about your next move.
Image Source: Melbourne Business School
HOW TRUMP'S PRESIDENCY COULD IMPACT OUR ECONOMY
With Donald Trump's inauguration marking a potential turning point for the global economy, experts are urging business leaders to watch key factors that could impact 2025. A major concern is the US-China trade war, which could lead to higher tariffs, reducing demand for Australian exports and potentially causing retaliatory tariffs. While there may be opportunities to boost exports of iron ore and minerals to the US, the overall economic ripple effects could hurt stock prices and household wealth in Australia. Additionally, the ongoing war in Ukraine could lead to fluctuating commodity prices, with an end to trade restrictions on Russia potentially lowering energy and agricultural prices. Inflation and interest rate decisions by the Reserve Bank of Australia will also play a critical role, with the bank expected to take a cautious approach. Amidst this uncertainty, both businesses and consumers are likely to adopt a wait-and-see strategy, potentially leading to lower demand and slower economic growth. Read More
5 KEY TRENDS IN OMNICHANNEL SHOPPING
Omnichannel shopping continues to grow in importance as retailers adapt to the changing needs of modern consumers, who now expect seamless shopping experiences across various channels. Key trends shaping the landscape include the rise of retail media networks, which are set to become a $1.3 trillion industry by 2026, offering brands powerful advertising opportunities. Social media is also playing a central role, with platforms like TikTok driving consumer decisions, especially in sectors like health and beauty. Personalisation is another major factor, with brands using data to deliver tailored experiences and customised products that resonate with individual preferences. Meanwhile, the shift towards "spearfishing" trips—purchasing a few items at a time—is evolving, with larger online baskets becoming more common. Finally, availability remains a top purchase driver, making it crucial for brands to accurately manage demand and avoid stockouts to capitalise on omnichannel opportunities. Read more
Image Source: Power Retail
AUSTRALIA POST BREAKS HOLIDAY DELIVERY RECORDS
Australia Post has set a new holiday delivery record, with 103 million parcels delivered during November and December 2024, marking a 3.1% increase from the previous year. This surge in deliveries saw 2,800 parcels being delivered every minute, with 7.6 million Australian households making online purchases during the period. To meet the demand, Australia Post reintroduced weekend deliveries and added 3,000 temporary workers. Health and Wellness, Athleisure, and Tools & Garden were the top categories, with online sales growing significantly across various states, including Northern Territory, Tasmania, and South Australia. As the company looks ahead, it sees retailers capitalising on the growing trend of strategic shopping, with key sales events like Cyber Weekend seeing a 7.8% increase in online purchases. Read more
PERSONALISATION PAYS: A £2.5BN OPPORTUNITY FOR BRANDS WHO AVOID GEN Z RED FLAGS IN ’25
SAP Emarsys latest research suggests Gen Z is set to drive £2.5 billion in spending during the January 2025 sales, presenting a huge opportunity for brands that cater to their preferences. However, brands that fail to meet Gen Z's expectations risk losing their loyalty. Key red flags include treating personal data irresponsibly, sending excessive marketing, and charging for returns. On the flip side, green flags like offering personalised experiences, using AI for shopping enhancements, and being relatable on social media can win their loyalty. Personalisation, in particular, is crucial, with 26% of Gen Z feeling more loyal to brands that tailor experiences to their preferences. Brands like PUMA are already using AI-driven insights to create personalised, seamless omnichannel experiences, showing the power of personalised engagement in building long-term loyalty with this influential generation. Read more
FROM HOLOGRAMS TO ROBOTS, THESE ARE THE COOLEST THINGS WE SAW AT CES 2025
The CES (Consumer Electronics Show), is one of the largest technology-focused trade conferences in the world. Held in Las Vegas every January, it is the showcase for new products and cutting-edge technology. So what were some of the key trends we saw, and what's in-store for consumers and brands for 2025? AI-powered health and wellness wearable tech, autonomous and electric vehicles, and the smart home of tomorrow took centre stage this year. Read more
Image Source: Australian Financial Review
YOUNG PEOPLE ARE THE HAPPIEST SHOPPERS. 3 CHARTS SHOW WHY.
Contrary to many other reports, a UBS survey revealed that young Australians aged 18 to 34 are feeling financially optimistic, largely shielded from inflation and high mortgage costs affecting older generations. Many in this group benefit from parental financial support, lower housing expenses, and stable job prospects, enabling greater spending on apparel, footwear, and experiences. UBS research indicates this cohort intends to splurge in the coming year, driven by factors such as tax cuts, government subsidies, and a desire for social sharing moments. Retailers catering to this demographic are well-positioned for success despite wider economic headwinds. Read more
Image Source: The Business of Fashion
THE STATE OF FASHION 2025: CHALLENGES AT EVERY TURN
The Business of Fashion has released its annual State of Fashion report, highlighting a tough year ahead for the industry as sluggish growth and economic uncertainty continue to weigh on brands. While the luxury market remains steady, non-luxury segments are expected to see more growth, driven by value-conscious shoppers gravitating towards resale and off-price options. As China’s economic expansion slows, brands are shifting focus to other parts of Asia, particularly India and Japan, to capture emerging consumer demand. With sustainability and supply chain resilience top of mind, fashion companies are leaning into differentiation, localisation, and enhanced customer experiences to stay competitive. In this landscape, agility and quick adaptation will be crucial for brands hoping to thrive. Read more
HOW GEN ALPHA IS REDEFINING BEAUTY AND WHAT IT MEANS FOR THE INDUSTRY
Generation Alpha is already making waves in the beauty industry, with their digital-first mindset and strong focus on social, environmental, and technological values. As this generation's spending power grows, beauty brands must adapt to their demand for responsibility and authenticity. Gen Alpha is drawn to skincare products marketed to adults but lacks understanding of their age-appropriate needs, creating an opportunity for brands to educate and promote healthy habits. Emerging technologies like AR and VR are also shaping their shopping experiences, while social media, self-acceptance, and inclusivity are central to their purchasing decisions. With a strong environmental consciousness and a commitment to diversity, Gen Alpha is pushing the beauty industry to be more transparent, inclusive, and sustainable, making it crucial for brands to align with these values. Read more
Image Source: CNBC
SHEIN EXEC SAYS TARIFFS SHOULDN’T AFFECT ITS CHEAP CLOTHES - AS LONG AS THEY’RE APPLIED ‘EQUALLY’
Shein’s chairman, Donald Tang, indicated that the company could maintain its low prices if proposed tariffs are applied equally across all regions. Although President Trump initially proposed high tariffs on Chinese imports, he later revised this to a more moderate rate of 10%. Despite the uncertainty around tariffs, Tang emphasised that Shein’s pricing would likely remain competitive. Read more