Australian shoppers now discover products equally in-store and online, forcing retailers to rethink everything from social ads to checkout experiences, according to Shopify’s Managing Director Shaun Broughton
What’s happening: Australian shoppers are discovering products across more channels than ever, with nearly half now equally likely to make purchases based on in-store and online browsing, up from 42% in-store and 41% online in 2024. This shift comes as planned Black Friday Cyber Monday spending jumps 43% to $324, though 58% of shoppers are setting strict budget caps.
Why this matters: The rise of hybrid discovery means retailers can no longer rely on a single channel to reach customers. Businesses are responding by increasing investment in social media ads (46%), online advertising (37%), and in-store events (23%), while 38% of shoppers plan to split their holiday shopping evenly between online and physical stores, demanding seamless experiences everywhere.
Australian shoppers have become relentless channel hoppers, discovering products wherever they happen to be scrolling, walking or clicking. Nearly half of consumers are more likely to make a purchase based on discovering a product from in-store and online browsing respectively, up from 42% in-store and 41% online in 2024, according to Shopify’s Holiday Retail Report.
This isn’t just about where people buy, it’s about where they find products in the first place. Word-of-mouth still carries weight, influencing 37% of shoppers, while 35% rely on online product reviews or comparison sites. Social media’s role continues to grow, with 30% discovering products through friends and brands they follow, 25% responding to direct social media ads, and 21% influenced by influencer endorsements.
Traditional channels haven’t disappeared, 26% still respond to search or banner ads, and 19% to TV, radio or billboards, but the power has clearly shifted toward hybrid discovery.
“Australian shoppers are entering the season with optimism, clearer budgets, and higher expectations,” said Shaun Broughton, Managing Director, APAC and Japan at Shopify. “They’re starting earlier, switching channels seamlessly, and seeking real value in every interaction. 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.”
The hybrid shopping experience extends well beyond discovery. More than a third of consumers plan to split their holiday shopping evenly between online and in-store this year, while 31% plan to do a majority in-store and 25% plan to do a majority online. Half prefer to shop online for smaller items and head in-store for larger purchases, reflecting a strategic approach to omnichannel retail that demands retailers integrate their physical and digital operations seamlessly.
Retailers are scrambling to meet shoppers wherever they are. Businesses are increasing investment in social media ads (46%), online advertising (37%), and digital video campaigns (31%). Email marketing (28%), search engine optimisation (24%), influencer partnerships (23%), and in-store promotions or events (23%) round out the multi-channel approach.
“It’s vital for brands to meet customers where they are, which for us means doubling down on live shopping, especially on TikTok, while also investing in smart ad spend and creative content that cuts through the noise,” said Stephanie Moore, Global Brand Director at Princess Polly.
The social discovery surge
Social media has evolved from a distraction to a legitimate shopping starting point. Beyond the 30% who discover products through friends and brands they follow, another 25% respond to direct social media ads, and 21% to influencer endorsements or promotions.
This explains why 46% of retailers are increasing investment in social media ads, the highest proportion of any channel. But it’s not just about throwing money at Instagram or TikTok, it’s about creating content that feels native to each platform.
“Our customers treat Black Friday like a game, building their shopping list early and waiting for the perfect deal, so our promotions have to be compelling from the start,” said Stephanie Moore, Global Brand Director at Princess Polly. “It’s vital for brands to meet customers where they are, which for us means doubling down on live shopping, especially on TikTok, while also investing in smart ad spend and creative content that cuts through the noise.”
The rise of AI is adding another layer to discovery. Nearly two-thirds of Australian consumers say they’d likely use AI for at least one task when doing their holiday shopping, while nearly half plan to use it to help them save money this year. Half of shoppers believe AI will make their shopping experiences better, especially when finding deals (31%) and inspiration (19%).
Retailers share this enthusiasm, with 86% feeling positive about the impact of AI-driven features in the year ahead, and 89% already investing or planning to invest in it to help customers discover or buy their products through AI shopping assistants. Behind the scenes, 51% are focusing on AI-generated content, while 32% use AI to forecast inventory or demand needs more effectively.
“For us, preparing for Black Friday Cyber Monday is fundamentally about earning our customers’ trust when it matters most,” said Karim Zuhri, CTO at Koala. “We’ve focused on delivering seamless, high-performance experiences under peak load, from optimising site speed and stability, to investing in SEO and GEO, and building intelligent agentic systems that connect directly with Shopify and help us drive efficiency. This foundation lets us move faster, test more, and serve customers better. Ultimately, the retailers who treat customers with intelligence, delivering fast, factual, conversational experiences, will win their attention and loyalty.”
Yet trust remains fragile. 72% of Australians remain wary of AI technology, the highest rate globally, and 78% say buying from a person still matters.
When checkout kills conversion
All the multi-channel discovery in the world means nothing if the checkout process fails. More than half of shoppers have abandoned a purchase due to complex checkout processes, especially higher spenders who have less patience for friction.
This statistic explains the renewed focus on seamless payment experiences. Discounts (54%), free shipping or returns (44%), and excellent service (38%) are the top loyalty drivers, but even the best deal can’t overcome a clunky checkout.
The confidence in Australian retail is rising, with nearly eight in ten businesses feeling more optimistic than last year and 76% expecting higher sales this holiday season. Consumer optimism is also improving, with planned Black Friday Cyber Monday spending up $98 year on year, from $226 in 2024 to $324 in 2025.
But that optimism is paired with caution. 58% of shoppers are setting clear caps on how much they’ll spend, and over a quarter plan to be stricter with their budgets this year, though 39% say sticking to their budget is a major challenge.
Promotions start in October
The traditional Black Friday weekend has morphed into a month long promotional marathon. Over a quarter of Australians plan to start shopping earlier this year, rising to 30% among the country’s highest spenders, those planning to spend over $1,990.
Retailers are responding by launching promotions earlier and running them longer. 66% intend to introduce new types of deals to attract cost conscious shoppers, 53% plan to offer bigger or more frequent discounts, and 65% intend to start sales earlier and run them longer.
Businesses expect to run promotions for just over 12 days on average, with 36% planning to start promotions from early November, and a further 22% kicking off either the week before or over the Black Friday Cyber Monday weekend. Meanwhile, two fifths of Australian shoppers are already writing lists and preparing purchases well before the holiday rush.
Brands risk missing opportunities if they launch too late. Businesses expect two fifths of their sales to come from promotional pricing, but they’re also looking beyond discounts. Almost a third of businesses plan to focus on loyalty programmes to build deeper customer loyalty this season, and 33% plan to launch new products or collections to boost results.
Despite growing confidence, retailers still face headwinds. Rising costs (50%) and economic uncertainty (46%) remain top concerns for businesses navigating the holiday season.
The challenge for Australian retailers is clear: meet shoppers across every channel they use to discover products, deploy AI thoughtfully while maintaining human connection, start promotions early, and eliminate friction at checkout. Those who execute this multi-channel strategy while delivering genuine value will capture not just holiday spending, but lasting customer loyalty in an increasingly fragmented retail landscape.
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